The inventory costing method that is based on the assumption that cost
should be charged against revenue in the order in which they were
incurred.
A. 
Fifo
B. 
Lifo
C. 
Average cost
2.
The inventory costing method that charges the most
recent costs incurred against revenue
A. 
Lifo
B. 
Average cost
C. 
Fifo
3.
The following units of a particular item were purchased and sold
during the period:What is the cost of the 35 units on hand at the end of the period as
determined under the perpetual inventory system by the lifo costing
method
Beginning inventory
40 units at P20
First purchase
50 units at P21
Second purchase
50 units at P22
First sale
110 units
Third purchase
50 units at 23
Second sale
45 units
A. 
715
B. 
705
C. 
700
D. 
805
4.
The following units of a particular item were purchased and
sold during the period:
Beginning inventory
40 units at P20
First purchase
50 units at P21
Second purchase
50 units at P22
First sale
110 units
Third purchase
50 units at 23
Second sale
45 units
What is the cost of the 35 units on hand at the end of
the period as determined under the periodic inventory system by the fifo
costing method
A. 
P20
B. 
P21
C. 
P22
D. 
P23
5.
If the merchandise inventory is being valued at cost and the price level
is steadily rising,the method of costing that will yield the highest
net income is: