Which of the Following Methods of Measuring the Cost of Goods

question 139

Multiple Choice

Which of the following methods of measuring the cost of goods sold most closely parallels the actual physical flow of the merchandise?

• A)LIFO
• B)FIFO
• C)Average cost
• D)Specific identification

---

Definitions:

Ad Valorem

A term describing taxes or duties calculated as a percentage of the value of goods or property.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified time frame.

Protective Tariffs

Taxes imposed on imported goods to protect domestic industries from foreign competition by making imported goods more expensive.

Trade Restrictions

Trade restrictions are government-imposed limitations on the international exchange of goods and services, such as tariffs, quotas, embargoes, or standards.