The Accountant at Elvira Company Is Figuring Out the Difference

question 178

Multiple Choice

The accountant at Elvira Company is figuring out the difference in net income depending on the choice of either FIFO or LIFO as an inventory costing method. The FIFO method will result in gross profit of $8,290. The LIFO method will result in gross profit of $26,000 and an inventory valuation that is $275 less than the FIFO inventory valuation. What is the difference in gross profit between the two methods?

• A) $275.
• B) $17,435.
• C) $17,710.
• D) Cannot be determined from the information provided.

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Definitions:

Hypothalamus

Located under the thalamus, this brain region is responsible for overseeing the activities of the autonomic nervous system and the pituitary gland, ensuring the regulation of body temperature, thirst, hunger, and other mechanisms vital for maintaining equilibrium within the body.

Limbic System

A complex system of nerves and networks in the brain, involving several areas near the edge of the cortex concerned with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

Thalamus

A part of the brain that acts as a relay station, processing and transmitting sensory information to various areas of the brain.

Temporal Lobes

Temporal lobes are parts of the brain located on either side of the head above the ears, involved in processing auditory information and are key in the formation of memories.