When Prices Are Falling

question 6

Multiple Choice

When prices are falling:

• A)LIFO will result in lower income and a lower inventory valuation than will FIFO.
• B)LIFO will result in lower income and a higher inventory valuation than will FIFO.
• C)LIFO will result in higher income and a higher inventory valuation than will FIFO.
• D)LIFO will result in higher income and a lower inventory valuation than will FIFO.

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Definitions:

Organizational Structure

the system that outlines how certain activities are directed in order to achieve the goals of an organization, including roles, rules, and responsibilities.

Decisions Made Quickly

A process where choices or judgments are reached in a short period of time, often to respond to immediate needs or opportunities.

Simple

Easily understood or done; presenting no difficulty.

Organizational Structure

The way in which a company or organization is organized, including the roles, responsibilities, and communication systems that govern how its activities are directed towards achieving its objectives.