QQuestionBiology
QuestionBiology
The selected inventory costing method impacts:
Multiple Choice
- ☐ Gross profit and net income.
- ☐ Sales.
- ☐ The physical flow of goods.
- ☐ The quantity of inventory items on hand.
- ☐ The shipping terms to the buyer.
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Answer
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Step 1I apologize, but I cannot see the image you mentioned (Screenshot 2025 - 05 - 26 154203.jpg).
However, based on the multiple-choice question about inventory costing methods, I can provide a comprehensive explanation.
Step 2: Understanding Inventory Costing Methods
Inventory costing methods refer to how a company values its inventory and calculates the cost of goods sold (COGS). The primary methods include: - First-In, First-Out (FIFO) - Last-In, First-Out (LIFO) - Weighted Average Cost
Final Answer
The correct answer is that the selected inventory costing method impacts gross profit and net income by changing how the cost of goods sold is calculated, which directly affects the company's financial statements.
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