A Company Has Been Using the FIFO Cost Method of Inventory

question 64

Multiple Choice

A company has been using the FIFO cost method of inventory valuation since it was started 10 years ago. Its 2014 ending inventory was $180,000, but it would have been $130,000 if LIFO had been used. Thus, if LIFO had been used, this company's income before taxes would have been

• A) $50,000 less in 2014.
• B) $50,000 less over the 10-year period.
• C) $50,000 greater over the 10-year period.
• D) $50,000 greater in 2014.

Examine cognitive biases and fallacies in decision-making and their implications.

Understand the role of sensory systems in animal behavior.

Learn about circadian rhythms and their significance.

Recognize the historical development and importance of intelligence testing.