Because LIFO Uses Older Costs for Inventory,in Times of Rising

question 68

Multiple Choice

Because LIFO uses older costs for inventory,in times of rising prices:

• A)LIFO results in a higher book value of inventory and lower inventory turnover ratio than FIFO.
• B)LIFO results in a lower book value of inventory and lower inventory turnover ratio than FIFO.
• C)LIFO results in a higher book value of inventory and higher inventory turnover ratio than FIFO.
• D)LIFO results in a lower book value of inventory and higher inventory turnover ratio than FIFO.

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Definitions:

Waterborne Disease

Illnesses caused by infectious agents that are transmitted through contaminated water.

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A group of green algae that live together in a colony, where individual cells are often connected by cytoplasmic bridges and exhibit little differentiation.

Volvox

A genus of green algae forming spherical colonies that live in fresh water and are capable of photosynthesis and sexual and asexual reproduction.

Eukaryotes

Organisms whose cells contain a nucleus and other organelles enclosed within membranes, contrasting with prokaryotes, which lack a membrane-bound nucleus.