During a period of steadily rising costs, the inventory valuation method that yields the highest reported net income is: Multiple Choice Specific identification method. Average cost method. Weighted-average method. FIFO method. LIFO method.

During a period of steadily rising costs, the inventory valuation method that yields the highest reported net income is: Multiple Choice Specific identification method. Average cost method. Weighted-average method. FIFO method. LIFO method.

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Description: During a period of steadily rising costs, the inventory valuation method that yields the highest reported net income is:Multiple ChoiceSpecific identification method.Average cost method.Weighted-average method.FIFO method.LIFO method.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4MC: In rimes of rising prices, the inventory cost method that will yield the highest cost of goods sold...

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In rimes of rising prices, the inventory cost method that will yield the highest cost of goods sold is (a) LIFO. (b) weighted-average. (c) FIFO. (d) none of the above.
When would using the FIFO inventory costing method produce higher inventory account balances than the LIFO method would? A. inflationary times B. deflationary times C. always D. never
When inventory items are highly specialized, the best inventory costing method is ________. A. specific identification B. first-in, first-out C. last-in, first-out D. weighted average
Considering the following information, and applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory?
When purchase costs regularly rise, the inventory costing method that yields the highest reported net income is: Multiple Choice Specific identification method. FIFO method. LIFO method. Average cost method. Weighted-average method.
In a period of rising prices, the inventory cost allocation method that tends to result in the highest reported net income is a. LIFOb. FIFOc. Moving Averaged. Weighted Average
Identify the inventory costing method (SI, FIFO, LIFO, or WA) best described by each of the following separate statements. Assume a period of increasing costs. 1. Precisely matches the costs of items with the revenues they generate. 2. Better matches current costs with revenues. 3. Yields the highest net income. 4. Tends to smooth out the erratic changes in costs. 5. Inventory on the balance sheet approximates its current cost.
Which cost flow assumption generally results in the highest reported amount of net income in periods of rising inventory costs? Multiple Choice LIFO. FIFO. Weighted-average. Income will be the same under each assumption.
Which of the following statements is correct? Group of answer choices A)The choice of an inventory costing method is dependent upon the actual physical flow of the inventory. B)LIFO should be used during a period of increasing prices when the objective is to maximize the ending inventory value on the balance sheet. C)FIFO should be used during a period of decreasing prices when the objective is to maximize the gross profit reported on the balance sheet. D)The average cost method will result in an ending inventory balance which is somewhere between LIFO and FIFO when inventory prices are changing.
In a period of rising costs, which inventory valuation method would a company likely choose if they want to have the highest possible amount of inventory reported in the balance sheet? Multiple Choice Weighted-average cost Straight-line FIFO LIFO
If prices are rising, which inventory cost flow method will produce the lowest amount of cost of goods sold? Multiple Choice Weighted average. LIFO, FIFO, and the weighted-average inventory cost flow methods will all produce equal amounts of cost of goods sold. FIFO. LIFO.
Identify the inventory costing method (SI, FIFO, LIFO, or WA) best described by each of the following separate statements. Assume a period of increasing costs. 1. Results in the highest cost of goods sold. 2. Yields the highest net income. 3. Has the lowest tax expense because of reporting the lowest net income. 4. Better matches current costs with revenues. 5. Precisely matches the costs of items with the revenues they generate.