One Advantage of the LIFO Method Is That

question 89

Multiple Choice

One advantage of the LIFO method is that:

• A)an equal cost is assigned to each unit,so net income does not fluctuate as much as with other methods.
• B)flow of goods and flow of costs are the same.
• C)it matches current selling prices and current costs.
• D)ending inventory is valued at very old costs.

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Definitions:

Acid-catalyzed Enolization

A chemical reaction where an acid catalyst promotes the conversion of a carbonyl compound to its enol form, involving the relocation of a proton.

Acetaldehyde

A volatile, colorless, and flammable liquid with a pungent odor, used as an intermediate in the synthesis of acetic acid, perfumes, and flavors.

Base-catalyzed Enolization

A chemical process in which a base catalyzes the conversion of a carbonyl compound to its enol form, usually as a key step in forming more reactive enolate ions.

Acetaldehyde

A volatile, colorless, and pungent compound used in the manufacture of acetic acid, perfumes, and flavors.