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:

Eating Disorders

Eating disorders are mental health conditions characterized by abnormal or disturbed eating habits that negatively affect a person's health and wellbeing.

Relapse Rates

The frequency or proportion of individuals who return to a previous state of illness or problematic behavior after a period of improvement.

Obsessive-compulsive Disorder

A mental health condition characterized by unwanted, repetitive thoughts (obsessions) and behaviors (compulsions) that the person feels compelled to perform.

Cognitive Restructuring

A cognitive-behavioral therapy technique aimed at identifying and modifying negative and irrational thoughts.