Taylor Company Changed Its Inventory Cost Flow Assumption from FIFO

question 100

Multiple Choice

Taylor Company changed its inventory cost flow assumption from FIFO to LIFO in a period of rising prices. What would be the effect of this change on ending inventory in the year of the change?

• A) increased ending inventory
• B) decreased ending inventory
• C) no change in ending inventory
• D) cannot be determined from the information given

---

Definitions:

Family Life Cycle

The series of stages through which a family progresses over time, affecting purchasing behavior and marketing strategies.

Decision Making

The process of making choices or conclusions based on available information, analysis, and preference.

Influencer

An individual who has the power to affect the purchasing decisions of others because of their authority, knowledge, position, or relationship with their audience.

Decision Maker

An individual or group responsible for making choices that will affect the outcome of a particular process or situation.