Which of the Following Statements Is False Regarding the Choice

question 210

Multiple Choice

Which of the following statements is false regarding the choice between alternative inventory costing methods?

• A)Each alternative method provides for the same amount of cost of goods available for sale to be allocated between ending inventory and cost of goods sold.
• B)In terms of current costs, FIFO presents a more realistic balance sheet; whereas LIFO presents a more realistic income statement.
• C)Companies sometimes choose FIFO because it is easier and less expensive to implement; whereas LIFO is often chosen for the tax benefits.
• D)Companies sometimes choose FIFO because it presents a more realistic income statement in terms of current market values.

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Definitions:

Satiety

The feeling of fullness or satisfaction that results from the consumption of food, leading to the cessation of eating.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for rapid action in threats, often referred to as the "fight or flight" response.

Ventral Hypothalamus

A portion of the hypothalamus associated with regulating metabolism, temperature, and various autonomic functions.

Parasympathetic Nervous System

Part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.