La Casita Restaurants Changed from the FIFO Method of Inventory

question 81

Multiple Choice

La Casita Restaurants changed from the FIFO method of inventory costing to the weighted average method during 2018. When reported in the 2018 comparative financial statements, the 2017 inventory amount will be:

• A) Increased.
• B) Decreased.
• C) Increased or decreased, depending on how prices changed.
• D) Unaffected.

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Definitions:

Micro-culture

A smaller culture or subculture within a larger cultural context, characterized by its own norms, values, and practices.

Saving Face

The act of preserving one's reputation, dignity, or respect in a social context.

Compromise

An agreement or settlement of a dispute reached by each side making concessions.

Forcing

The act of making someone do something against their will or without their consent.