Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the cheesecake factory incorporated (nasdaq: cake)

The Cheesecake Factory Incorporated (NASDAQ: CAKE) operates over 200 restaurants and two bakeries in the...

70.2K

Verified Solution

Question

Accounting

The Cheesecake Factory Incorporated (NASDAQ: CAKE) operates over 200 restaurants and two bakeries in the
United States. In its two bakeries, it bakes and prepares more than 70 desserts, both for its own use in its restaurants
and for sale to a wide variety of wholesalers and retailers. The Cheesecake Factory's inventories consist of restaurant
food and supplies, bakery raw materials, and bakery finished goods. To account for its inventory, the company uses
the average-cost method at its restaurants and the FIFO method at its bakeries. The Cheesecake Factory Incorporated's
financial statements from its 2019 Form 10-K are as follows:
(Click the icon to view the balance sheet.)(Click the icon to view the income statement.)
Which of the following is not true of the FIFO inventory method?
A. When costs are decreasing, FIFO results in the highest ending inventory.
B. The first costs into inventory are the first costs assigned to COGS.
C. The cost of ending inventory is based on the latest costs incurred.
D. When costs are increasing, FIFO results in the lowest COGS.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

Part A. Calculate the enthalpy of the reaction 2NO(g)+O2(g)?2NO2(g) given the following reactions and enthalpies of formation: 12N2(g)+O2(g)?NO2(g),   ?H?A=33.2...

Medical Sciences
1.2K views

what is the anatomical description of the skin?

Mechanical Engineering
1.2K views

Briefly describe how a Design of Experiments methodology can be used when testing a new pump...

Basic Math
1.2K views

1. Use excel function exp( ) to calculate raising e to the power of (-2.5 +...

Biology
1.2K views

Which of the following will not support viral cultivation?Live lab animalsEmbryonated bird eggsPrimary cell cultures...

Statistics
1.2K views

Evaluate E T t Sd for t 0 673 s 3 151 and n 8...

Accounting
1.2K views

Help with my study questions for QuickBooks premier addition 2020 multiple choice, thanks in advance!...

Accounting
1.2K views

1. Johnathan is an accountant who works for Reading Railroad Ltd, which is...

Accounting
1.2K views

Discuss the differences between accounting for a partnership with accounting for a corporation.

Accounting
1.2K views

2 2 points Which of the following is included in the computation...

Accounting
1.2K views

Wilm Schmidt, the owner of Wilms Window Washing Services, had difficulty getting the debits to...

Accounting
1.2K views

Provide at least two examples where the accounting rules reflect a tendency towards more conservative...