One of the Principal Reasons for Selecting the LIFO Cost

question 29

Multiple Choice

One of the principal reasons for selecting the LIFO cost flow assumption instead of the FIFO cost flow assumption in an inflationary economic environment is that:

• A)net income will be higher.
• B)income taxes will be lower.
• C)balance sheet inventory values will be higher.
• D)a higher selling price can be established.

---

Definitions:

Expression

A combination of symbols that together represent a numerical or algebraic expression.

\(x\)

A symbol commonly used to represent an unknown quantity in mathematics.

\(2y^5\)

A mathematical expression, specifically a monomial, indicating the product of the constant 2 and the variable \(y\) raised to the fifth power.

Equation

A mathematical statement that asserts the equivalence of two expressions.