Question Details

Which inventory costing method most closely 


1.	The manager of Yates Company is given a bonus based on income before income taxes. Net income, after taxes, is $8,400 for FIFO and $7,560 for average-cost. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of average-cost?
a.	$300
b.	$450
c.	$240
d.	$840

2.	The consistent application of an inventory costing method is essential for
a.	prudence.
b.	accuracy.
c.	comparability.
d.	efficiency.

3.	Which inventory costing method most closely approximates current cost for each of the following:
			Ending Inventory	  Cost of Goods Sold
a.	      FIFO			FIFO
b.	      FIFO		      Average-cost
c.	  Average-cost		FIFO
d.	  Average-cost	      Average-cost

4.	In a period of rising prices, the inventory method which tends to report the lowest inventory is
a.	FIFO.
b.	LISH.
c.	Specific identification.
d.	Average-cost.

5.	In a period of rising prices which inventory method generally provides the greatest amount of net income?
a.	Average-cost.
b.	FIFO.
c.	LISH.
d.	Cannot be determined.





Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help