If Inventory Levels Are Stable or Increasing an Argument That

question 5

Multiple Choice

If inventory levels are stable or increasing an argument that favors the FIFO method as compared to LIFO is

• A) Income taxes tend to be reduced in periods of rising prices
• B) Cost of goods sold tends to be stated at approximately current cost in the income statement
• C) Cost assignments typically parallel the physical flow of the goods
• D) Income tends to be smoothed as prices change over time

---

Definitions:

Papyrus

An early form of writing paper developed by the Egyptians.

Movable Type

Gutenberg’s invention that allowed individual letters or images to be moved without influencing the surrounding text.

Innis's Theories

The ideas and theories of Harold Innis, a Canadian economist and scholar known for his contributions to media theory and economic history, especially the concepts of time-biased and space-biased media.

Transcend Space

To go beyond or rise above the physical boundaries of space, often in a metaphysical or abstract context.