Which of the Following Statements About the Use of the LIFO

question 52

Multiple Choice

Which of the following statements about the use of the LIFO assumption is NOT true?

• A) In times of inflation,it produces a higher cost of goods sold than FIFO.
• B) In times of falling prices,it produces lower income tax than FIFO.
• C) The LIFO assumption matches revenues with expenses better than FIFO or average.
• D) The LIFO assumption is affected by whether its amounts are determined using the periodic or perpetual control methods.

---

Definitions:

Hourly Rate

The amount of money paid for each hour of work, commonly used to calculate wages for part-time, temporary, or freelance employees.

Demographic Group

A specific segment of the population identified by characteristics such as age, gender, income, etc., for analysis or targeting.

Bona Fide Occupational Qualification

A work requirement that is necessary for the normal operation of a particular business or job, which may involve a certain age, sex, or religion, exempt from usual discrimination laws under specific conditions.

Legal Defence

The arguments and evidence presented in court to defend against criminal or civil charges.