Which of the Following Statements Regarding Inventory Costing Methods Is

question 56

Multiple Choice

Which of the following statements regarding inventory costing methods is true?

• A) The LIFO method assumes that the costs for the newest goods (the last ones in) are used first and the older costs are left in ending inventory.
• B) During a period of rising prices, LIFO results in a higher income tax expense than does FIFO.
• C) Internal Financial Reporting Standards (IFRS) allow the use of LIFO but not FIFO.
• D) In the U.S., if a company uses LIFO on the income tax return, it may use a different method for financial

---

Definitions:

Behaviorism

A psychological approach that emphasizes the study of observable behaviors and the effects of learning and environment.

Gestalt Psychology

A theory of mind and behavior that proposes the human brain perceives things as whole patterns and configurations, rather than merely as the sum of their parts.

Psychoanalysis

A set of psychological theories and therapeutic techniques related to the study of the unconscious mind, founded by Sigmund Freud.

Humanistic Psychology

A psychological approach focusing on the comprehensive analysis of individuals and the distinctiveness of everyone's personal experiences.