In a Period of Increasing Prices, Which Inventory Flow Assumption

question 161

Multiple Choice

In a period of increasing prices, which inventory flow assumption will result in the lowest amount of income tax expense?

• A)FIFO
• B)LIFO
• C)Average cost method
• D)Income tax expense for the period will be the same under all assumptions.

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Arbitrary

Decisions or actions not based on a system, principle, or rule and often appearing random or subject to individual will without restriction.

Future-Oriented

A perspective or approach that focuses on planning, forecasting, and preparing for upcoming changes, challenges, and opportunities.

Career Progression

Career progression involves the advancement or upward movement in one's professional life, through promotions, learning new skills, or changing roles.

Management-By-Objectives

A managerial strategy where employees and managers collaborate to set, monitor, and achieve specific objectives within an organization.