Heinz Company Began Operations on January 1, 2014, and Uses

question 51

Multiple Choice

Heinz Company began operations on January 1, 2014, and uses the FIFO method in costing its raw material inventory. Management is contemplating a change to the LIFO method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed: Based on the above information, a change to the LIFO method in 2015 would result in net income for 2015 of

• A) $1,170,000.
• B) $1,130,000.
• C) $1,054,000.
• D) $1,050,000.

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Definitions:

Military Necessity

A legal and ethical principle justifying measures that are necessary to achieve a legitimate military objective and that are not otherwise prohibited by international humanitarian law.

Soviet Union's Declaration

A formal announcement or statement made by the Soviet Union, which could pertain to policy, intent, or ideology during its existence from 1922 to 1991.

Winston Churchill

A British politician, army officer, and writer who served as the Prime Minister of the United Kingdom during World War II and again in the early 1950s.

Eastern Front

A major theater of combat during World War I and World War II, encompassing the battles between Germany, Austria-Hungary, and their allies against Russia and later the Soviet Union.