Which of the Following Will Occur When Inventory Costs Are

question 17

Multiple Choice

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

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

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Definitions:

Vague Feeling

An indistinct or unclear emotional state that is difficult to define or express precisely.

Threat

A potential source of harm or adverse effect on someone or something, which may be real or perceived.

Opportunity

A set of circumstances that makes it possible to do something or for something to happen; often seen as a chance for progress or advancement.

Personal Loss

The experience of losing something significant in one's life, such as a loved one, relationship, or job, which can lead to emotional distress.