Correct Answer:
C. Higher closing inventory value and higher profit compared with weighted average
FIFO charges older, lower costs to cost of goods sold and leaves recent higher costs in inventory.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
During a period of rising prices, the FIFO method gives:
Related MCQs
Who has primary responsibility for the prevention and detection of fraud?
A.
The external auditor only
B.
The shareholders only
C.
The tax authority
D.
Management and those charged with governance
Correct answer is:
D. Management and those charged with governance
Do you agree with this answer?
According to the NPV rule, an independent project should be accepted if its NPV is:
A.
Negative
B.
Positive
C.
Zero or negative
D.
Equal to the initial investment
Correct answer is:
B. Positive
Do you agree with this answer?
Irregular expenditure generally means expenditure:
A.
Incurred without compliance with rules, regulations or proper sanction
B.
That is within the budget and rules
C.
That is less than expected
D.
Made in a leap year
Correct answer is:
A. Incurred without compliance with rules, regulations or proper sanction
Do you agree with this answer?
Prime cost is the sum of:
A.
Direct materials and factory overhead
B.
Direct labor and factory overhead
C.
Indirect materials and indirect labor
D.
Direct materials, direct labor and direct expenses
Correct answer is:
D. Direct materials, direct labor and direct expenses
Do you agree with this answer?
Tax-to-GDP ratio is calculated as:
A.
GDP divided by tax revenue
B.
Total revenue divided by total expenditure
C.
Tax revenue divided by GDP, expressed as a percentage
D.
Public debt divided by GDP
Correct answer is:
C. Tax revenue divided by GDP, expressed as a percentage
Do you agree with this answer?
Tax incidence refers to:
A.
The date on which the tax is due
B.
The rate of tax
C.
Who finally bears the burden of a tax
D.
The number of taxpayers
Correct answer is:
C. Who finally bears the burden of a tax
Do you agree with this answer?
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