Question Details

An inventory pricing procedure in which the oldest costs incurred 




1.	An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is
a.	FIFO.
b.	LIFO.
c.	specific identification.
d.	weighted-average.

	2.	Which method of inventory pricing best approximates specific identification of the actual flow of costs and units in most manufacturing situations?
a.	Average cost
b.	First-in, first-out
c.	moving-average
d.	weighted-average

	3.	Assuming no beginning inventory, what can be said about the trend of inventory prices if cost of goods sold computed when inventory is valued using the FIFO method exceeds cost of goods sold when inventory is valued using the average cost method?
a.	Prices decreased.
b.	Prices remained unchanged.
c.	Prices increased.
d.	Price trend cannot be determined from information given.

	4.	In a period of rising prices, the inventory method which tends to give the highest reported net income is
a.	moving-average.
b.	first-in, first-out.
c.	specific identification.
d.	weighted-average.

	5.	In a period of rising prices, the inventory method which tends to give the highest reported inventory is
a.	FIFO.
b.	moving average.
c.	specific identification.



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