Which of the following cost flow assumptions is used for inventory when an entity builds townhouses?

Which of the following cost flow assumptions is used for inventory when an entity builds townhouses? A. FIFO B. Specific identification C. Weighted...

Which of the following is likely to be a circumstances where the specific identification method can be used?

Which of the following is likely to be a circumstances where the specific identification method can be used? A. Unit price is low B. Inventory turnover...

Which is the reason why specific identification method may be considered ideal for assigning cost to inventory and cost of goods sold!

Which is the reason why specific identification method may be considered ideal for assigning cost to inventory and cost of goods sold! A. The potential...

The cost of inventories that are not ordinarily interchangeable and goods or services produced and segregated for specific projects shall be measured using

The cost of inventories that are not ordinarily interchangeable and goods or services produced and segregated for specific projects shall be measured...

The costing of inventory must be deferred until the end of reporting period under which of the following method of inventory valuation?

The costing of inventory must be deferred until the end of reporting period under which of the following method of inventory valuation? A. Moving...

In a period of falling prices, which inventory method generally provides the highest amount of net income?

In a period of falling prices, which inventory method generally provides the highest amount of net income? A. Weighted average B. Moving average C....

In a period of falling prices, which inventory method generally provides lowest amount of ending inventory?

In a period of falling prices, which inventory method generally provides lowest amount of ending inventory? A. Weighted average B. FIFO C. Moving...

In a period of declining prices, the inventory method which tends to give the highest amount of costs of goods sold is

In a period of declining prices, the inventory method which tends to give the highest amount of costs of goods sold is A. Specific isentification B....

What is the inventory pricing procedure in which the oldest costs rarely have an effect on the ending inventory?

What is the inventory pricing procedure in which the oldest costs rarely have an effect on the ending inventory? A. FIFO B. LIFO C. Specific identification D....

IFRS prohibits which of the following cost flow assumptions?

IFRS prohibits which of the following cost flow assumptions? A. LIFO B. Specific identification C. Weighted average D. Any of these cost flow assumptions...

Assuming no beginning inventory, what can be said about the trend of inventory prices if cost of goods sold using the FIFO method exceeds cost of goods sold using the average cost method?

Assuming no beginning inventory, what can be said about the trend of inventory prices if cost of goods sold using the FIFO method exceeds cost of goods...

The inventory cost was lower using FIFO than LIFO. If there is no beginning inventory, what direction did the cost of purchases move during the period?

The inventory cost was lower using FIFO than LIFO. If there is no beginning inventory, what direction did the cost of purchases move during the period? A....

During periods of rising prices, when the FIFO inventory cost flow method is used, a perpetual inventory system would

During periods of rising prices, when the FIFO inventory cost flow method is used, a perpetual inventory system would A. Not be permitted B. Result...

Cost of goods sold is the same under a periodic system as under a perpetual system when an entity uses

Cost of goods sold is the same under a periodic system as under a perpetual system when an entity uses A. FIFO B. LIFO C. Weighted average D. Specific...

Which method of inventory pricing best approximates specific identification of the actual flow of costs and units?

Which method of inventory pricing best approximates specific identification of the actual flow of costs and units? A. LIFO B. FIFO C. Moving average D....

Which inventory cost flow assumption provides the best measure of earnings, where "best" means most appropriate for predicting future earnings, when prices have been declining?

Which inventory cost flow assumption provides the best measure of earnings, where "best" means most appropriate for predicting future earnings, when...

In the period of rising prices, the inventory cost allocation that tends to result in the lowest reported net income is

In the period of rising prices, the inventory cost allocation that tends to result in the lowest reported net income is A. FIFO B. LIFO C. Moving...

In a period of falling prices, the use of which inventory cost flow method would typically result in the highest cost of goods sold?

In a period of falling prices, the use of which inventory cost flow method would typically result in the highest cost of goods sold? A. FIFO B. LIFO C....

Which inventory cost flow assumption would consistently results in the highest income in a period sustained inflation?

Which inventory cost flow assumption would consistently results in the highest income in a period sustained inflation? A. FIFO B. LIFO C. Weighted...

Which if the following inventory method measures most closely the current inventory?

Which if the following inventory method measures most closely the current inventory? A. FIFO B. Specific identification C. Wighted average D. LIFO Answer: A....

Inventory Cost Flow Multiple Choice Questions and Answers

1. Which if the following inventory method measures most closely the current inventory? A. FIFO B. Specific identification C. Weighted average D. LIFO Answer: A....