Indicate Whether Each of the Following Statements Related to Inventory

question 161

True/False

Indicate whether each of the following statements related to inventory is true or false.________ a)The higher a company's inventory turnover ratio, the higher its cost of financing inventory.________ b)The selling price a company charges for its goods probably will not be affected by the inventory cost flow method it uses.________ c)Other things being equal, if inventory prices are rising, a company that uses the LIFO inventory method will have a higher amount of total assets than if it had used FIFO.________ d)A company that plans to offer a higher level of customer service than its competitors probably will have a higher gross margin percentage than its competitors.________ e)The lower-of-cost-or-market rule may decrease a company's net income, but it will never increase net income.

---

Definitions:

Abstract

A summary of a research paper, thesis, review, conference proceeding, or any in-depth analysis of a particular subject or discipline.

Latent

Hidden; not apparent.

Abstract

A brief summary of the research, its methods, results, and conclusions found at the beginning of a scholarly article.

Content Analysis

A systematic examination of texts or media to classify information and explore relationships between concepts.