[amp_mcq option1=”Last In First Out” option2=”First In First Out” option3=”Highest In First Out” option4=”weighted average price” correct=”option4″]<\/p>\n
The correct answer is: D. weighted average price<\/strong><\/p>\n Weighted average price is a method of pricing issues that takes into account the cost of each unit of inventory, as well as the quantity of each unit. This method results in a more accurate reflection of the current economic value of the inventory.<\/p>\n Last in first out (LIFO) is a method of pricing issues that assumes that the most recently purchased units of inventory are the first to be sold. This method results in a lower cost of goods sold and a higher net income.<\/p>\n First in first out (FIFO) is a method of pricing issues that assumes that the oldest units of inventory are the first to be sold. This method results in a higher cost of goods sold and a lower net income.<\/p>\n Highest in first out (HIFO) is a method of pricing issues that assumes that the most expensive units of inventory are the first to be sold. This method results in the highest cost of goods sold and the lowest net income.<\/p>\n Weighted average price is the most accurate method of pricing issues because it takes into account the cost of each unit of inventory, as well as the quantity of each unit. This method results in a more accurate reflection of the current economic value of the inventory.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Last In First Out” option2=”First In First Out” option3=”Highest In First Out” option4=”weighted average price” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-46952","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n