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When Prices Are Falling, the Ending Inventory Balance Reported on a FIFO

Question 60

Multiple Choice

When prices are falling, the ending inventory balance reported on a FIFO basis is generally:


A) lower than on a weighted-average basis.
B) greater than on a weighted-average basis.
C) equal to ending inventory reported on a weighted-average basis.
D) equally likely to be higher or lower on a weighted-average basis as opposed to a FIFO basis.

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