Which Inventory Costing Method Results in the Lowest Income Tax

question 179

Multiple Choice

Which inventory costing method results in the lowest income tax expense during a period of decreasing purchase prices?

• A)FIFO
• B)LIFO
• C)specific identification
• D)weighted average cost

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Definitions:

Converted

Changed or transformed in form, character, or function.

Estray Statutes

Laws governing the finding and reporting of lost or stray livestock or domestic animals.

Title

A legal term referring to the legal right to own, use, or dispose of property.

Confusion

The mixing together of goods belonging to two or more owners to such an extent that the separately owned goods cannot be identified.