In a Period of Increasing Prices, Which Inventory Flow Assumption

question 161

Multiple Choice

In a period of increasing prices, which inventory flow assumption will result in the lowest amount of income tax expense?

• A)FIFO
• B)LIFO
• C)Average cost method
• D)Income tax expense for the period will be the same under all assumptions.

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Definitions:

Standard Deviation

A measure of the dispersion or variance in a set of values, indicating how much the values deviate from the mean.

Service Level

A measure of the quality of a service provided, often defined by the percentage of customer demands met.

Standard Deviation

A measure in statistics that quantifies the amount of variation or dispersion of a set of data values.