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Answer FIFO, LIFO or Average cost 1 Produces the same COGS under both the periodic and the perpetual inventory systems. 2. Rarely used with a
| Answer FIFO, LIFO or Average cost 1Produces the same COGS under both the periodic and the perpetual inventory systems. | |
| 2. Rarely used with a perpetual inventory system. | |
| 3. Produces results that are similar to the specific identification method. | |
| 4. Widely used for tax purposes. | |
| 5. Never results in either the highest or lowest possible net income. | |
| 6. Produces the highest gross profit when costs are decreasing. | |
| 7. Produces the highest ending inventory when costs are increasing. | |
| 8. Assigns the same value to all inventory units. | |
| 9. Prohibited under International Financial Reporting Standards (IFRS). | |
| 10. Does not follow the physical flow of goods in most cases. | |
| 11. Cost of the latest purchases are assigned to ending inventory |
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Intermediate Accounting
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
11th edition
978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139
