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

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Definitions:

Logical Decision

The process of making a choice based on logical conditions or comparisons in programming or digital circuits.

Alternating Current

An electric current that periodically reverses direction, in contrast to direct current (DC) that flows only in one direction.

Direct Current

A type of electrical current where the flow of electric charge is in one direction, commonly used in low voltage applications.

NOR Function

A logical operation that outputs true only if all inputs are false, used in digital electronics and computer programming.