Question 6 a:

Which of the following statements is correct and applies to inventory-costing methods during a period of rising prices and inflation?

a		FIFO results in a lower cost of goods sold, higher ending inventory, higher gross profit margin
b		LIFO results in lower a cost of goods sold, lower ending inventory, stabilized gross profit margins
c		Average cost results are higher
d		FIFO and LIFO stabilize gross profit margins

b: Which one of these is NOT an example of goods classified as inventory?

a		raw materials
b		work or goods in process
c		finished goods
d		sold goods

c: The combination of the cost of direct labor and materials and other costs related to the manufacturing process is called ________.

a		total expenses
b		operating costs
c		cost of goods sold
d		manufacturing overhead
e		cost of production