NO.PZ2016012102000114
问题如下:
Given the price is increasing, compared to LIFO method, if company using average cost method for inventory could not have a:
选项:
A.higher current ratio.
B.lower gross margin.
C.lower asset turnover.
解释:
B
Compared with LIFO, the company using average cost method will report lower COGS, higher gross profit, and higher ending inventory, so current assets will be higher, and then the current ratio will be higher. Consequently, gross margin would be higher and asset turnover would be lower under the average cost inventory method.
为啥average cost method会降低COGS