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:

Vertebrae

The individual bones that make up the vertebral column, providing structural support and protecting the spinal cord.

Levator Scapulae

A skeletal muscle situated at the back and side of the neck, its primary function is to elevate the scapula.

Scapula

Also known as the shoulder blade, it is a flat, triangular bone located in the upper back.

Pectoralis Major

A large muscle in the upper chest that assists in the movement of the shoulder joint.