The Second Step in Calculating Dollar-Value LIFO Is to

question 92

Multiple Choice

The second step in calculating dollar-value LIFO is to

• A) compute the change in the inventory level for the year at base-year cost
• B) roll back the ending inventory cost to base-year costs
• C) value the total ending inventory at current-year costs
• D) roll forward the increase to current-year cost by applying the current-year conversion index

---

Definitions:

Total Utility

The overall satisfaction or value a consumer derives from consuming a particular quantity of goods or services.

Consumption

The use of goods and services by households, constituting one of the primary components of GDP and a fundamental concept in economics signifying final consumption.

Salience

The quality of being particularly noticeable or important; prominence.

Demand

The desire and ability of consumers to purchase goods and services at a given price.