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Question 6 a:
Which of the following statements is correct and applies to inventory-costing methods during a period of rising prices and inflation?
| a | | FIFO results in a lower cost of goods sold, higher ending inventory, higher gross profit margin |
| b | | LIFO results in lower a cost of goods sold, lower ending inventory, stabilized gross profit margins |
| c | | Average cost results are higher |
| d | | FIFO and LIFO stabilize gross profit margins |
b: Which one of these is NOT an example of goods classified as inventory?
| a | | raw materials |
| b | | work or goods in process |
| c | | finished goods |
| d | | sold goods |
c: The combination of the cost of direct labor and materials and other costs related to the manufacturing process is called ________.
| a | | total expenses |
| b | | operating costs |
| c | | cost of goods sold |
| d | | manufacturing overhead |
| e | | cost of production |
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