The Accountant at Paige Company Is Figuring Out the Difference

question 157

Multiple Choice

The accountant at Paige Company is figuring out the difference in income taxes the company will pay depending on the choice of either FIFO or average-cost as an inventory costing method. The tax rate is 30% and the FIFO method will result in income before taxes of $18,200. The average-cost method will result in income before taxes of $16,450. What is the difference in tax that would be paid between the two methods?

• A) $1,750.
• B) $750.
• C) $525.
• D) Cannot be determined from the information provided.

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Definitions:

Shaping Procedure

A method of positive reinforcement of behavior by which successive approximations of a desired behavior are reinforced.

Primary Reinforcer

An innately reinforcing stimulus, such as one that satisfies a biological need.

Conditioned Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer; also known as a secondary reinforcer.

Toilet Training

The process of teaching a young child to control their bladder and bowel movements and to use the toilet for elimination.