When Purchase Costs of Inventory Regularly Decline, Which Method of Inventory

question 161

Multiple Choice

When purchase costs of inventory regularly decline, which method of inventory costing will yield the lowest cost of goods sold?

• A) FIFO.
• B) LIFO.
• C) Weighted average.
• D) Specific identification.
• E) Gross margin.

---

Definitions:

Database Accuracy

The degree to which data in a database is correct, up-to-date, and free of errors.

Data Type

A classification of data which tells the compiler or interpreter how the programmer intends to use the data.

Default Value

The initial value assigned to a database field or a variable if no other value is specified by the user or a program.

Input Mask

A predefined format that restricts the type of data that can be entered into a database field, ensuring data integrity by requiring specific formats (e.g., phone numbers, dates).