Asked by

Nicole Mariano
on Oct 28, 2024

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Which of the following statements is incorrect?

A) A year-end purchase of inventory increases the LIFO cost of goods sold when unit costs are increasing.
B) A year-end purchase of inventory increases the FIFO ending inventory when unit costs are increasing.
C) The choice of an inventory costing method is dependent on the actual flow of goods when inventory is sold.
D) A year-end purchase of inventory has an impact on the weighted-average ending inventory when unit costs are increasing.

Inventory Costing Method

A method used to assign costs to inventory, affecting how costs are reported in the financial statements.

Year-End Purchase

Acquisitions or purchases made by a company close to the end of its fiscal year, often impacting the annual financial statements.

LIFO Cost of Goods Sold

An inventory costing method where the last items placed in inventory are considered the first ones sold, affecting the cost of goods sold during a period.

  • Analyze the influence of various inventory costing techniques on financial records under changing cost environments.
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EA
Efemena AbogidiOct 30, 2024
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