In a Period of Declining Prices,which of the Following Inventory

question 49

Multiple Choice

In a period of declining prices,which of the following inventory methods generally results in the highest balance sheet figure for inventory?

• A) LIFO
• B) Cannot tell without more information
• C) FIFO
• D) Average-cost

Analyze the impact of changes in production volume on total costs and per unit costs.

Determine the contribution margin and calculate its ratio.

Analyze the effects of changes in sales volume and selling price on net operating income.

Calculate break-even points and margin of safety in both units and dollars.