If FIFO Is Used for Inventory Valuation Instead of LIFO

question 19

Multiple Choice

If FIFO is used for inventory valuation instead of LIFO when prices are falling:

• A)Cost of goods sold will be less under FIFO than LIFO.
• B)Cost of goods sold will be more under FIFO than LIFO.
• C)Inventory value will be less under FIFO than LIFO.
• D)There is no difference in inventory or cost of goods sold.

---

Definitions:

Entity

An individual, company, organization, or system that has a distinct, separate existence for legal or business purposes.

Data Dictionary

A collection of definitions of data elements; data characteristics that use the data elements; and the individuals, business functions, applications, and reports that use these data elements.

Attribute

An attribute or element considered inherent or typical of an individual or entity.

Internet of Things

A network of physical objects embedded with sensors, software, or other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet.