أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
A. Weighted average.
B. FIFO.
C. LIFO.
D. Specific identification.
C. Last In First Out (LIFO) Method
C) LIFO will be correct answer.
I believe by using LIFO, Inventory valuations will be lesser than other inventory valuation methods in inflationary economy (e.g. FIFO, weighted/Moving average or specific identification) and COGS will be higher. This situation will consequently impact in higher inventory Turnover by using formula of COGS/ Inventory.
Probably i prefer FIFO,SINCE ITS MORE EFFICIENCY AND EASY TO OPERATE.
B) FIFO: It will produce lower CGS and higher Net income
Answer............D. Specific identification
C. LIFO - for manufacture Co.
D. Specific identification -for Trading