If a Company Uses the LIFO Inventory Costing Method,when Would

question 215

Multiple Choice

If a company uses the LIFO inventory costing method,when would a LIFO inventory liquidation occur?

• A) when the company buys more merchandise during the accounting period than it sells
• B) when the company cannot determine the ending inventory because it has been destroyed or stolen
• C) when the company changes its inventory method from FIFO to LIFO.
• D) when the company sells more merchandise during the accounting period than it purchased

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Definitions:

Conservative Shift

A psychological theory indicating that groups tend to make decisions that are more risk-averse or conservative than individual members would make alone.

Group Decision Making

The process by which a group of individuals collaboratively makes a choice from the alternatives.

Company Data

Information related to the business operations, financials, and performance metrics of a company.

Scientific Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.