A Firm Has Used LIFO for Several Years During Which

question 45

Multiple Choice

A firm has used LIFO for several years during which costs have trended higher.The effect on 2020 net income using LIFO, relative to FIFO, will be:

• A)net income for 2020 will be greater under LIFO than FIFO.
• B)net income for 2020 will be less under LIFO than FIFO.
• C)net income for 2020 will be the same under LIFO as under FIFO.
• D)impossible to determine from the information given.

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Definitions:

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined primarily by competition in a free market.

Western Marxism

A strand of Marxist theory that emphasizes culture and ideology's role in the capitalist system, originating in Western Europe.

Critical Forms

Various expressions or methods used to analyze, assess, or engage with issues, works, or subjects deeply.

Dogmatic Forms

Rigid, unflexible beliefs or doctrines that are accepted without question, often in a religious, political, or philosophical context.