22.Which inventory costing method has a stabilizing effect on profit, such that during a period of rising prices its use produces a not so high cost of goods sold and not so low profit as the earlier lower costs tend to stabilize the effect of increasing prices on both cost of goods sold and ending inventory? a. First-in, first-out method b. Last-in, first-out method c. Specific identification method d. Average method
22.Which inventory costing method has a stabilizing effect on profit, such that during a period of rising prices its use produces a not so high cost of goods sold and not so low profit as the earlier lower costs tend to stabilize the effect of increasing prices on both cost of goods sold and ending inventory? a. First-in, first-out method b. Last-in, first-out method c. Specific identification method d. Average method
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 25CE: Effects of Inventory Costing Methods Refer to your answers for Filimonov Inc. in Cornerstone...
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22.Which inventory costing method has a stabilizing effect on profit, such that during a period of rising prices its use produces a not so high cost of goods sold and not so low profit as the earlier lower costs tend to stabilize the effect of increasing prices on both cost of goods sold and ending inventory?
a. First-in, first-out method
b. Last-in, first-out method
c. Specific identification method
d. Average method
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