In 2015,Richard's Department Store Changes Its Inventory Method from FIFO

question 99

Multiple Choice

In 2015,Richard's Department Store changes its inventory method from FIFO to LIFO.Richard's uses the simplified LIFO method.Richard's year-end inventory under FIFO is as follows: 2014 - $300,000; 2015 - $350,000.The 2014 price index is 110% and the 2015 index is 120%.The 2015 layer is

• A)$19,097.
• B)$20,833.
• C)$22,727.
• D)$50,000.

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Definitions:

Market Representation

The degree to which a statistical sample or a financial index accurately reflects the broader market or sector it aims to represent.

Portfolio

A collection of investments held by an individual or institution, including stocks, bonds, commodities, and more, to diversify risk.

Active Management

The use of a human element, such as a single manager or a team of managers, to actively manage a fund's portfolio.

Trading Costs

Expenses associated with buying and selling securities, including commissions, spreads, and market impact costs.