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Gabriel Carrillo
on Nov 14, 2024

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In a period of declining prices, which of the following inventory cost formulas generally results in the lowest inventory figure on the statement of financial position?

A) average cost
B) FIFO
C) The figure would be the same under both FIFO and average cost.
D) need more information to answer

Inventory Figure

The total value of a company's merchandise, raw materials, and finished and unfinished products which have not yet been sold.

Financial Position

Financial position is the status of a person's or entity's assets, liabilities, and equity at a given point in time, providing a snapshot of financial health.

  • Understand the effects of price changes on inventory valuations and company profit margins.
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Brenden HamiltonNov 18, 2024
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