Which of the Following Statements About Inventory Costing Methods Is

question 12

Multiple Choice

Which of the following statements about inventory costing methods is correct?

• A)A change in inventory method is allowed only if it improves the accuracy of the company's financial results.
• B)During a period of rising prices,LIFO results in a higher income tax expense than does FIFO.
• C)International Financial Reporting Standards (IFRS)allow the use of LIFO but not FIFO.
• D)In the U.S. ,if a company uses LIFO on the income tax return,it may use a different method for financial reporting.

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Definitions:

Grocery Store

A retail establishment selling food and other household goods. Often considered an essential service providing everyday necessities to the public.

External Cost

Costs of a transaction or activity that affect parties who did not choose to incur that cost, often referred to in the context of negative externalities in environmental economics.

Postal Worker

An employee of the postal service who is involved in the processing, delivery, or handling of mail.

Crowded Break Room

A situation where the designated area for employees to take breaks is excessively occupied, leading to a lack of space and resources.