Question

When an analyst is looking at profitability ratios, which inventory accounting method is preferred? A. FIFO...

When an analyst is looking at profitability ratios, which inventory accounting method is preferred?

A. FIFO

B. Weighted average cost

C. LIFO

D. Profitability ratios are not affected by the inventory accounting method used

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Method. The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Method. The units of an item available for sale during the year were as follows: Jan. 1 Inventory 9 units at $30 $270 Aug. 13 Purchase 20 units at $33 660 Nov. 30 Purchase 12 units at $34 408 Available for sale 41 units $1,338 There are 17 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a)...
Which inventory valuation method provides for the highest profit in a period of inflation? LIFO FIFO...
Which inventory valuation method provides for the highest profit in a period of inflation? LIFO FIFO Weighted Average Specific Identification
22. Which inventory costing method assigns the cost of the most recent items purchased to cost...
22. Which inventory costing method assigns the cost of the most recent items purchased to cost of goods sold? a. LIFO b. Weighted average cost c. FIFO d. Specific identification
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 5 units at $25 $125 Aug. 7 Purchase 19 units at $28 532 Dec. 11 Purchase 13 units at $29 377 37 units $1,034 There are 18 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 6 units at $39 $234 July 7 Purchase 10 units at $41 410 Nov. 23 Purchase 15 units at $43 645 31 units $1,289 There are 12 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 13 units at $41 $533 Aug. 7 Purchase 16 units at $44 704 Dec. 11 Purchase 14 units at $46 644 43 units $1,881 There are 17 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 15 units at $26 $390 Aug. 7 Purchase 20 units at $27 540 Dec. 11 Purchase 12 units at $29 348 47 units $1,278 There are 20 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 12 units at $46 $552 Aug. 13 Purchase 18 units at $48 864 Nov. 30 Purchase 4 units at $49 196 Available for sale 34 units $1,612 There are 14 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 13 units at $44 $572 Aug. 7 Purchase 18 units at $46 828 Dec. 11 Purchase 12 units at $48 576 43 units $1,976 There are 16 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available...
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan.1 Inventory 4 units at $44 Aug.7 Purchase 19 units at $47 Dec. 11 Purchase 13 units at $48 Total 36 units $1693 There are 19 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the...