Under the FIFO Cost Flow Assumption During a Period of Rising

question 87

Multiple Choice

Under the FIFO cost flow assumption during a period of rising costs,which of the following is false?

• A)Income tax expense will be higher under FIFO than under LIFO.
• B)Net income will be higher under FIFO than under LIFO.
• C)Ending inventory will be lower under FIFO than under LIFO.
• D)Cost of goods sold will be lower under FIFO than under LIFO.

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Definitions:

Extreme

A condition, situation, or attribute that is far beyond the norm or average, often used in psychological studies to describe outlier behaviors or conditions.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, including the mean, median, and mode as common examples.

Household Incomes

The total income earned by all members of a household, encompassing all financial sources.

Annual Income

The total amount of money earned or received in a year from employment, investments, or other sources before taxes and deductions.