Which of the Following Statements About the FIFO Cost Formula

question 15

Multiple Choice

Which of the following statements about the FIFO cost formula is true?

• A)The same costs per unit are assigned to the ending inventory and the cost of goods sold.
• B)Companies prefer to use FIFO because it lowers their tax liability.
• C)In times of rising prices FIFO will produce a higher net income than weighted-average.
• D)In time of rising prices FIFO produces an inventory cost per unit that is lower than the cost per unit of cost of goods sold.

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Definitions:

Psychotherapy

A form of treatment for mental health conditions where a trained therapist uses psychological methods to help a person change and overcome problems in desired ways.

Psychoanalysis

A therapeutic approach that focuses on exploring unconscious desires and conflicts to understand and treat psychological disorders.

Applied Behavior Analysis

A therapy based on the science of learning and behavior, aiming at improving specific behaviors and understanding how behaviors are affected by the environment.

Deinstitutionalization

A social movement and policy trend aimed at reducing the population of mental hospitals and transferring care to less isolated community-based settings.