Which One of the Following Is Not an Advantage of Using

question 26

Multiple Choice

Which one of the following is not an advantage of using the FIFO cost flow assumption?

• A)produces lowest net income in periods of rising prices
• B)provides a relevant ending inventory value
• C)is not as susceptible to profit manipulation by management
• D)does not produce unusual results when inventory liquidation occurs

---

Definitions:

Efficient

Optimally using resources in a manner that maximizes the production of goods and services without wasting them.

Resources

The inputs used in the production of goods and services, including labor, capital, land, and entrepreneurship.

Individual Choices

Decisions made by individuals based on their preferences and circumstances, affecting their personal welfare and the allocation of resources.

Incentives

Financial or non-financial rewards designed to encourage specific behaviors or actions from individuals or entities.