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IIA

IIA-CIA-PART3 · Question #48

Which of the following represents an inventory costing technique that can be manipulated by management to boost net income by selling units purchased at a low cost?

The correct answer is A. First-in. first-out method (FIFO). See the full explanation below for the reasoning.

Question

Which of the following represents an inventory costing technique that can be manipulated by management to boost net income by selling units purchased at a low cost?

Options

  • AFirst-in. first-out method (FIFO).
  • BLast-in, first-out method (LIFO).
  • CSpecific identification method.
  • DAverage-cost method

How the community answered

(19 responses)
  • A
    68% (13)
  • B
    16% (3)
  • C
    11% (2)
  • D
    5% (1)

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