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

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Definitions:

Individualistic Model

Independent view of community, described by Gleason, in which biological interactions are less important in the production of communities than are environmental gradients (such as climate and soil) or even chance. Compare with organismic model.

Interdependent

A relationship in which two or more entities rely on each other for survival or for the completion of processes.

Organismic Model

A conceptual model in biology that sees a community or ecosystem as a single living organism, emphasizing interactions and integration.

Individualistic Model

A theoretical framework in ecology that views communities as assemblies of species with similar ecological requirements, independently distributed along environmental gradients.