When Costs Are Increasing, and Inventory Levels Are Stable, a Company

question 48

Multiple Choice

When costs are increasing, and inventory levels are stable, a company will report ________.

• A) lower cost of goods sold under LIFO than FIFO
• B) lower inventory under FIFO than LIFO
• C) higher net income under LIFO than FIFO
• D) lower net income under LIFO than FIFO

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Definitions:

Homologous

Referring to genes, chromosomes, or structures that are similar in position, structure, and evolutionary origin, but not necessarily in function.

Psilotum

A genus of fern-like plants that belongs to one of the oldest groups of vascular plants, providing insights into the early evolutionary history of plants.

Herb

A plant with leaves, seeds, or flowers used for flavoring, food, medicine, or perfume.

Exaptation

An exaptation is a trait that initially carries out one function and is later co-opted for a new function. The original function may or may not be retained.