Which of the Following Would Be True If Inventory Costs

question 13

Multiple Choice

Which of the following would be true if inventory costs were increasing?

• A) LIFO would result in lower net income and lower ending inventory amounts than would FIFO
• B) FIFO would result in lower net income and higher ending inventory amounts than would LIFO
• C) LIFO would result in a lower net income amount but a higher ending inventory amount than would FIFO
• D) None of these would be true

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Definitions:

Direct Influence

The exertion of power or guidance by one party over another that leads to immediate or direct changes in behavior or decisions.

Sleeper Effect

A delayed increase in the effectiveness of a persuasive message, often occurring when the source’s credibility is reassessed over time.

Peer Pressure

The influence exerted by a peer group in encouraging an individual to change their attitudes, values, or behaviors to conform to group norms.

Attitude Change

The process by which an individual's feelings, beliefs, or behaviors towards an object, person, or situation are modified.