When Comparing the FIFO and LIFO Inventory Methods, ________

question 10

Multiple Choice

When comparing the FIFO and LIFO inventory methods, ________.

• A) LIFO reports the most up-to-date inventory cost on the balance sheet
• B) FIFO results in the most realistic net income figure
• C) FIFO matches old inventory costs against revenue
• D) LIFO matches old inventory costs against revenue

---

Definitions:

Basing-Point Pricing

A pricing strategy where the price of goods includes transportation costs from a specific location, regardless of the actual shipment origin.

Deceptive Pricing

Pricing practices intended to mislead or trick consumers about the actual cost of a product or service.

Federal Trade Commission

A United States government agency aimed at promoting consumer protection and eliminating harmful anti-competitive business practices.

Legislation

Laws that have been enacted by a government or legislative body.