Which of the Following Results in the Inventory Being Stated

question 145

Multiple Choice

Which of the following results in the inventory being stated at the most current acquisition costs?

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

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Definitions:

Labor Efficiency Variance

The difference between the actual number of labor hours used in production and the standard hours expected for that level of production, multiplied by the standard hourly labor rate.

Particular Product

A specific item or commodity that is produced or sold by a business.

Last Month

Refers to the month immediately preceding the current month, used in reporting and analysis to compare recent performance or activity.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost multiplied by the actual quantity of materials used.