Which Inventory Valuation Method Gives the Highest Profit When Inventory

question 49

Multiple Choice

Which inventory valuation method gives the highest profit when inventory costs are rising?

• A) FIFO.
• B) LIFO.
• C) Weighted average.
• D) It is not possible to calculate which method gives the highest profit.

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Definitions:

Traditional Authority

A form of leadership in which authority is legitimized by customs, cultural traditions, and historical precedence.

Rational-legal Authority

A form of leadership where authority is legitimized by legal rules and regulations, and is exercised by officials according to their administrative roles.

Semi-nomadic Lifestyle

A way of life for some cultures that involves moving seasonally while maintaining some fixed habitation.

Harvesting Season

The time of year when crops are ripe and ready to be gathered, varying according to the type of crop and geographical location.