LIFO Is the Preferred Inventory Costing Method When Costs Are

question 144

True/False

LIFO is the preferred inventory costing method when costs are rising and managers have incentives to report higher income.When income is higher,managers may earn bonuses and have more job security and a better reputation.

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Definitions:

Oral Agreement

A contract or agreement made through spoken words rather than in written form which can be legally binding in certain circumstances.

Part Performance

A legal principle that allows an incomplete contract to be enforced if one party has taken significant actions based on the agreement, demonstrating the existence of the contract.

Oral Promise

An agreement made verbally that may or may not be legally binding, depending on the context and content.

Modification

The process of making changes or alterations to something, such as a contract or plan, to correct or improve it.