when the cost of purchasing inventory is declining, which inventory cost flow method will produce the highest amount of cost of goods sold? lifo weighted-average fifo lifo, fifo, and weighted-average will all produce the same amount of cost of goods sold. none of the above.

Question

25-10-2022
Business

Answered

when the cost of purchasing inventory is declining, which inventory cost flow method will produce the highest amount of cost of goods sold? lifo weighted-average fifo lifo, fifo, and weighted-average will all produce the same amount of cost of goods sold. none of the above.

Answer :

Other Questions

courtney company uses a periodic inventory system. the following data were available: beginning inventory, 1,200 units at $30; purchases, 3,600 units at $34; op

which of the following statements is true regarding capitalization of interest? group of answer choices when excess borrowed funds not immediately needed for co

the total value of all the goods and services sold by a country is known as what?

What three economic questions are asked when studying the similarities of traditional, command, market, and mixed economies among nations of the world? What to

What three economic questions are asked when studying the similarities of traditional, command, market, and mixed economies among nations of the world? Pilihan

becton labs, incorporated, produces various chemical compounds for industrial use. one compound, called fludex, is prepared using an elaborate distilling proces

A decline in the value of the U.S. dollar will likely result in an increase in the —answer choices- price of products- use of credit card- amount of gold reserv

Advantages of exchange-traded options over OTC options include all but which one of the following?A. Ease and low cost of tradingB. Anonymity of participantsC.

on january 1, year 1, jing company purchased office equipment that cost $18,200 cash. the equipment was delivered under terms fob shipping point, and transporta

g you work for granite properties and they have asked you to analyze a potential investment. it is a new apartment complex located on s chauncey ave that will h

shomerajeshwari90 shomerajeshwari90 · Answer 1 · 2022-10-28T03:06:24-04:00

When the cost of purchasing inventory is declining, FIFO (First-in-first-out) inventory cost flow method will produce the highest amount of cost of goods sold. So, the correct answer is (c).

Both the raw ingredients used in manufacturing and the finished products that are available for sale are covered by the definition of inventory. One of the business's most valuable resources is its inventory since it is one of the major sources of income generation and, subsequently, a source of cash flow for the shareholders of the company. There are three distinct types of inventories: finished commodities, work-in-progress, and raw materials. On the company's balance sheet, it is listed as a liquid asset.

When the cost of purchasing inventory goes down, in that case usage of FIFO (first-in-first-out) method will help the business to produce maximum amount of cost of goods sold.

The complete question is here:

When the cost of purchasing inventory is declining, which inventory cost flow method will produce the highest amount of cost of goods sold?

A. Weighted average

B. LIFO

C. FIFO

D. LIFO, FIFO, and weighted average will all produce the same amount of cost of goods sold.

Learn more about inventory here:

https://brainly.com/question/15118949

#SPJ4