__________ Is a False Statement

question 48

Multiple Choice

__________ is a false statement.

• A)During periods of inflation, LIFO makes the balance sheet less representative of the actual inventory values than if FIFO were used
• B)During periods of inflation, FIFO makes the balance sheet less representative of actual inventory values than if LIFO were used
• C)During periods of inflation, LIFO overstates earnings relative to FIFO
• D)During periods of inflation, FIFO makes the balance sheet less representative of actual inventory values than if LIFO were used, and LIFO overstates earnings relative to FIFO

---

Definitions:

Forecast

A prediction or estimate of future events or trends, often based on current data and analysis.

Random Variation Component

Represents the unpredictable fluctuations that are inherent in a set of data, often modeled as random error in statistical analyses.

Seasonal Variation

Periodic fluctuations in data or events that occur regularly based on the season or time of year.

Systematic Patterns

Regular and predictable behaviors or formations that follow a determined order within a data set or observed phenomena.