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Which statement relating to the moving average method of costing inventories, used with the perpetual inventory system, is incorrect? A new average cost is

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Which statement relating to the moving average method of costing inventories, used with the perpetual inventory system, is incorrect? A new average cost is calculated after each sale The formula for average cost is cost of goods available for sale divided by units for sale A new average cost is calculated after each purchase return In periods of rising prices the profit result is between that of the FIFO and LIFO methods

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