Which of the following statements about the moving average cost assumption is true?
A)If prices are rising companies prefer it because it lowers their tax liability.
B)It is the most popular method in Canada.
C)In times of rising prices moving average will produce a higher net income than FIFO.
D)In time of rising prices moving average produces an inventory cost per unit that is higher than the cost per unit of cost of goods sold.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements about the moving average cost assumption is true?
A)If prices are rising companies prefer it because it lowers their tax liability.
B)It is the most popular method in Canada.
C)In times of rising prices moving average will produce a higher net income than FIFO.
D)In time of rising prices moving average produces an inventory cost per unit that is higher than the cost per unit of cost of goods sold.

Which of the Following Statements About the Moving Average Cost