Which of the Following Will Occur When Inventory Costs Are

question 81

Multiple Choice

Which of the following will occur when inventory costs are decreasing?

• A)FIFO will result in a lower net income but a higher ending inventory then will LIFO.
• B)FIFO will result in a higher net income but a lower ending inventory then will LIFO.
• C)FIFO will result in a lower net income and a lower ending inventory then will LIFO.
• D)FIFO will result in a higher net income and a higher ending inventory then will LIFO.

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Definitions:

Subsidizing Farmers

The practice of providing financial assistance to farmers by the government to encourage agricultural production and ensure food security.

Political Jurisdictions

Defined areas under the authority of certain governmental entities where specific laws, regulations, and powers are applied and enforced.

Urban Sprawl

The uncontrolled expansion of urban areas into the surrounding countryside, often characterized by low-density residential development, increased reliance on personal vehicles, and loss of natural habitats.

Low-Cost Gasoline

Gasoline that is available at a lower price, often due to government subsidies, regional availability, or lessened environmental regulations.