Interactive Tech Company just started business and is trying to decide which inventory cost formula to use Assuming prices are falling, as they oft en do in the information technology sector, answer the following questions for Interactive Tech (a) Which formula will result in the higher ending inventory Explain (b) Which formula will result in the higher cost of goods sold Explain (c) Which formula will result in the higher cash flow Explain (d) What factors are important for Interactive Tech to consider as it tries to choose the most appropriate inventory cost formula

Question: Interactive Tech Company just started business and is trying to decide which inventory cost formula to use. Assuming prices are falling, as they oft en

Interactive Tech Company just started business and is trying to decide which inventory cost formula to use. Assuming prices are falling, as they oft en do in the information technology sector, answer the following questions for Interactive Tech:
(a) Which formula will result in the higher ? Explain.
(b) Which formula will result in the higher cost of goods sold? Explain.
(c) Which formula will result in the higher cash flow? Explain.
(d) What factors are important for Interactive Tech to consider as it tries to choose the most appropriate inventory cost formula?

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