When Input Prices Are Increasing,companies That Use the LIFO Method

question 27

Multiple Choice

When input prices are increasing,companies that use the LIFO method of accounting for inventory will report:

• A) Lower cost of goods sold amounts in comparison to the FIFO method
• B) Higher sales amounts in comparison to the FIFO method
• C) Higher ending inventory amounts in comparison to the FIFO method
• D) Lower gross profit margins in comparison to the FIFO method

---

Definitions:

Santo Domingo

The capital and largest city of the Dominican Republic, known for its rich history and as the site of the first European settlement in the Americas.

Cuzco

A city in southeastern Peru, once the capital of the Inca Empire, known for its archaeological remains and Spanish colonial architecture.

Hopi Name

A term referring to the names given within the Hopi tribe, which hold cultural, spiritual, and personal significance.

Spirits

Non-physical beings often associated with the supernatural, religious beliefs, or the essence of life.