Q30 Which of the following is the advantage ofusing weighted average inventory valuation?a. When prices are rising, its cost ofgoods sold is less than that obtainedunder LIFO,b. It is the middle-of-the-roadapproachO c. All of the optionsd. Inventory is not as badly understatedas under LIFO, but it is not as up-to-date as under FIFO

Under FIFO, beginning purchases constitutes the cost of goods sold and ending purchases are the…

Which of the following is the advantage of using weighted average inventory valuation? When prices are rising, its cost of goods sold is less than that obtained under LIFO, O b. It is the middle-of-the-road approach O c. All of the options d. Inventory is not as badly understated as under LIFO, but it is not as up-to- date as under FIFO

Which of the following is the advantage of using weighted average inventory valuation? When prices are rising, its cost of goods sold is less than that obtained under LIFO, O b. It is the middle-of-the-road approach O c. All of the options d. Inventory is not as badly understated as under LIFO, but it is not as up-to- date as under FIFO

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4MC: In rimes of rising prices, the inventory cost method that will yield the highest cost of goods sold...

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Similar questions

In rimes of rising prices, the inventory cost method that will yield the highest cost of goods sold is (a) LIFO. (b) weighted-average. (c) FIFO. (d) none of the above.
When would using the FIFO inventory costing method produce higher inventory account balances than the LIFO method would? A. inflationary times B. deflationary times C. always D. never
Which accounting rule serves as the primary basis for the lower-of-cost-or-market methodology for inventory valuation? A. conservatism B. consistency C. optimism D. pessimism
Considering the following information, and applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory?
Which one of the following statements is true? a. Under conditions of rising prices, the LIFO method results in lower income than the FIFO method. b. In most cases, the LIFO method approximates the physical flow of items in inventory. c. The LIFO mthod produces a higher ending inventory value than the FIFO method. d. The FIFO method excludes holding gains from income
What is the dollar-value method of LIFO inventory valuation?What advantage does the dollar-value methodhave over the specific goods approach of LIFO inventoryvaluation? Why will the traditional LIFO inventory costingmethod and the dollar-value LIFO inventory costingmethod produce different inventory valuations if thecomposition of the inventory base changes?