In Periods of Rising Prices, Which Is an Advantage of Using

question 169

Multiple Choice

In periods of rising prices, which is an advantage of using the LIFO inventory costing method?

• A) Ending inventory will include latest (most recent) costs and thus be more realistic.
• B) Cost of goods sold will include latest (most recent) costs and thus will be more realistic.
• C) Net income will be the highest and thus reflect the prosperity of the company.
• D) Phantom profits are reported.

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Definitions:

Fovea

A tiny depression in the center of the retina, responsible for our sharp central vision and high-resolution color vision.

Peripheral Vision

The ability to see objects that are not in the direct line of vision, but rather in the outer edges of the visual field.

Color Vision

Color vision is the capacity of the eye and brain to distinguish objects based on the wavelengths of the light they reflect, emit, or transmit.

Retina

The light-sensitive layer of tissue at the back of the eye that converts light into neural signals.