During a Period of Rising Prices, the FIFO Technique of Inventory

question 173

True/False

During a period of rising prices, the FIFO technique of inventory valuation will result in a lower net income figure than would the LIFO technique.

---

Definitions:

Complete

Refers to a state where all necessary parts are present or when a process has been finished entirely, leaving nothing omitted.

Reflexive

A property of binary relations where every element is related to itself; often discussed in mathematics and logic.

Transitive

A property in logic and mathematics where if relation A relates to B and B relates to C, then A must relate to C.

Utility Function

A utility function is an economic model that relates the satisfaction or utility a consumer derives from consuming specific quantities of goods and services.