Which of the Following Statements Is Correct When Inventory Unit

question 40

Multiple Choice

Which of the following statements is correct when inventory unit costs are decreasing?

• A)Inventory turnover will be the greatest when the average cost inventory method is used.
• B)FIFO's gross profit will be the highest among the inventory costing methods.
• C)Inventory turnover will be the largest when the LIFO inventory method is used.
• D)Use of the LIFO method will result in lower cash flows due to a decreased cost of goods sold.

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Definitions:

Reckless Indifference

denotes a disregard or lack of concern for the consequences of one's actions, particularly where such actions pose a risk to others.

Tangible Employment Action

A significant change in employment status or benefits, such as occurs when an employee is fired, refused a promotion, or reassigned to a lesser position.

Supervisor's Sexual Harassment

Unwanted sexual advances, requests for sexual favors, or other verbal or physical harassment of a sexual nature made by a supervisor towards a subordinate.

Liable

Legally responsible or obligated to make amends for a loss or damage.