Which of the Following Statements Is Incorrect When Inventory Prices

question 87

Multiple Choice

Which of the following statements is incorrect when inventory prices are increasing?

• A)LIFO's cost of goods sold will be the largest among the inventory costing methods.
• B)LIFO's income tax will be the lowest among the inventory costing methods.
• C)Ending inventory using the average cost method will be larger than the ending inventory when the LIFO method is used.
• D)Cost of goods sold using the average cost method will be less than cost of goods sold when the FIFO method is used.

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Definitions:

Terrestrial Biomes

Large geographic regions defined by the dominant plant life and climate, including forests, deserts, grasslands, and tundra.

Mature Taiga

A biome characterized by dense forests of conifers in the northern regions that have reached a mature ecological stage with complex ecosystems.

Mature Tropical Rain Forest

A type of forest found in the tropics characterized by high levels of rainfall, biodiversity, and old, fully developed trees.

Low-pressure Air Mass

A region of the atmosphere where the air pressure is lower than surrounding areas, often resulting in cloudy weather and precipitation.