During Periods of Inflation, the Use of FIFO (Rather Than

question 47

Multiple Choice

During periods of inflation, the use of FIFO (rather than LIFO) as the method of accounting for inventories causes

• A) higher reported sales.
• B) higher incomes taxes.
• C) lower ending inventory.
• D) higher incomes taxes and lower ending inventory.
• E) None of the options are correct.

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Definitions:

Future Requirements

The anticipated needs or conditions that an organization must prepare for to ensure future success and sustainability.

Personnel

Employees or staff members of an organization, often referred to in the context of human resource management.

Supply Forecasting

The process of determining the source or sources of human capital to satisfy the organization's demand.

Human Capital

The collective skills, knowledge, and abilities of an organization's workforce that contribute to its economic value.