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

question 162

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 the 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.

---

Definitions:

Late Childhood

A developmental stage covering the period from around 9 to 12 years old, prior to adolescence, characterized by significant growth in social, cognitive, and emotional areas.

Enriched Environment

An enriched environment is one that provides sensory, physical, and intellectual stimulation beyond the basics, facilitating greater cognitive, emotional, and physical development.

Neuronal Connections

The links formed between neurons through synapses, which allow for communication within the brain and the nervous system.

Species

A group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding.