FIFO tends to increase cost of goods sold when: O A. costs are declining O B....

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FIFO tends to increase cost of goods sold when: O A. costs are declining O B. costs are constant O C. costs are increasing OD

If ending inventory on December 31, 2016, is overstated, then O A. gross margin for the year ended December 31, 2016, will be

Victory Stables Ltd. for the year ended December 31, 2016, are as follows: Sales revenue $550,000 Cost of goods sold 110,000

City Sporting Goods started April with an inventory of 12 sets of golf clubs that cost a total of $1,836. During April, City

Which of the following would be included in the Inventory account on a merchandising companys balance sheet? O A. delivery c

business accounting

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Answer 1

Answer #1

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OPTION: costs are declining

EXPLANATION:

In the period of falling prices, when goods being sold are valued using FIFO, their cost tends to increase as goods removed are valued using oldest prices which are higher than the prevalent in current period.

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Answer 2

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1. FIFO tends to increase cost of goods sold when: A. costs are constant B. costs...

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