Accounting MCQ Inventory Cost Flow 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 sold using the average cost method?

Naim 00:02 Inventory Cost Flow

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?

A. Prices decreased
B. Prices remained unchanged
C. Prices increased
D. Prices trend cannot be determined from the information

Answer: A. Prices decreased

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Accounting MCQ

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 sold using the average cost method?

Learn More :

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