The Managers of Hong Company Receive Performance Bonuses Based on the Net

question 34

Multiple Choice

The managers of Hong Company receive performance bonuses based on the net income of the firm.Which inventory costing method are they likely to favor in periods of declining prices?

• A)LIFO
• B)Average-Cost
• C)FIFO
• D)Physical inventory method

---

Definitions:

Place Theory

A theory in the field of psychophysics that suggests the perception of sound depends on where each component frequency produces vibrations along the basilar membrane of the inner ear.

Frequency Theory

A theory related to hearing that suggests the brain detects the frequency of an auditory signal by the rate at which the auditory nerve fires.

Taste Sensations

The experience or perception of taste, typically categorized into basic tastes such as sweet, sour, salty, bitter, and umami.

Salt

A mineral composed primarily of sodium chloride (NaCl), used in cooking and preserving food, and is essential for human health in small amounts.