Under the LIFO Cost Flow Assumption During a Period of Inflation,which

question 58

Multiple Choice

Under the LIFO cost flow assumption during a period of inflation,which of the following is false?

• A)Cost of goods sold will be lower than under FIFO.
• B)Gross margin will be lower than under FIFO.
• C)Income tax expense will be lower than under FIFO.
• D)Ending inventory will be lower than under FIFO.

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Definitions:

Unemployment

The condition of being jobless despite an active search for employment.

Money Supply Growth

The increase in the total amount of monetary assets available in an economy at a specific time.

Unemployment Rate

The proportion of the workforce that is unemployed and actively seeking work.

Long-run Phillips Curve

An economic concept that represents the relationship between inflation and unemployment when the effects of short-term shocks have dissipated, showing no trade-off between inflation and unemployment in the long run.