Which of the Following Statements Is Correct When Inventory Unit

question 33

Multiple Choice

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

• A)LIFO will result in lower net income and a higher inventory valuation than will FIFO.
• B)LIFO will result in higher net income and a higher inventory valuation than will FIFO.
• C)FIFO will result in higher net income and a higher inventory valuation than will LIFO.
• D)FIFO will result in higher net income and a lower inventory valuation than will LIFO.

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Definitions:

Infrastructure

The basic physical and organizational infrastructure and services such as buildings, roads, and power facilities required for the functioning of a society or business.

Human Capital

The collective skills, knowledge, and other intangible assets of individuals that can be used to create economic value.

Surplus Labor

This term refers to the portion of the labor force which is not currently being employed to its full potential, often leading to unemployment or underemployment in an economy.

Agriculture

The science or practice of farming, including cultivation of the soil for the growing of crops and the rearing of animals to provide food, wool, and other products.