Identify Which Inventory Costing Method (LIFO or FIFO) Achieves the Effect

question 186

Multiple Choice

Identify which inventory costing method (LIFO or FIFO) achieves the effect listed in the following items:
-Prices are rising; cost of goods sold is lower with this method.

• A)LIFO
• B)FIFO

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Definitions:

Reasonable Manner

Conducting oneself in a way that a prudent person would consider fair and appropriate under the circumstances.

Emancipated Minor

A minor who has legally been granted independence from parental control, often involving financial self-sufficiency or marriage.

Capacity to Contract

refers to the legal ability of a person to enter into a binding agreement.

Ward's Capacity

The legal competence or ability of a ward (a person under the protection of a legal guardian) to act in their own interests.