In Periods of Rising Prices, Which Is an Advantage of Using

question 162

Multiple Choice

In periods of rising prices, which is an advantage of using the LIFO inventory costing method?

• A)Ending inventory will include latest (most recent) costs and thus be more realistic.
• B)Cost of goods sold will include the latest (most recent) costs and thus will be more realistic.
• C)Net income will be the highest and thus reflect the prosperity of the company.
• D)Phantom profits are reported.

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Definitions:

Communication

The process of exchanging information, ideas, thoughts, and feelings between people through speech, writing, visuals, or behavior.

Intrasender Role Conflict

A situation where an individual receives conflicting messages or expectations from the same source, leading to stress or confusion.

Social Position

An individual's rank or status within a social hierarchy, which can be determined by factors such as occupation, wealth, or education.

Interrole Conflict

Occurs when the expectations of different roles that an individual occupies clash with each other.