During a Period of Rising Prices, If a Firm Desires

question 46

Multiple Choice

During a period of rising prices, if a firm desires to report a low gross profit figure in hopes of reducing their income tax liability, the firm will use the ________ inventory valuation method.

• A) FIFO (first-in, first-out)
• B) LIFO (last-in, first-out)
• C) sliding scale
• D) average cost

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