Question: When prices are falling, the cost of goods sold reported on the income statement on a weighted-average-basis is generally: a) Lower than on a FIFO
When prices are falling, the cost of goods sold reported on the income statement on a weighted-average-basis is generally:
a) Lower than on a FIFO basis
b) Greater than on a FIFO basis
c) equal to ending inventory reported on a FIFO basis
d) equally likely to be higher or lower on a weighted-average-basis as opposed to a FIFO basis
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