During Periods When Costs Are Rising and Inventory Quantities Are

question 79

Multiple Choice

During periods when costs are rising and inventory quantities are stable, ending inventory will be:

• A) Higher under LIFO than FIFO.
• B) Lower under average cost than LIFO.
• C) Higher under average cost than FIFO.
• D) Higher under FIFO than LIFO.

---

Definitions:

Cognitive Dissonance Theory

The idea that people have such distaste for perceiving inconsistencies in their beliefs, attitudes, and behavior that they will bias their own attitudes and beliefs to try to deny inconsistencies.

Attributional Ambiguity

A phenomenon whereby members of stigmatized groups often can be uncertain whether negative experiences are based on their own actions and abilities or are the result of prejudice.

Discrimination

Unequal treatment or prejudice against individuals on the basis of their membership in a particular group, negatively affecting their opportunities and well-being.

Cognitive Dissonance Theory

A theory suggesting that people experience discomfort (dissonance) when holding conflicting cognitions and are motivated to reduce this discomfort by altering attitudes, beliefs, or behaviors.