A Disadvantage of the LIFO Method of Inventory Valuation Is

question 7

Multiple Choice

A disadvantage of the LIFO method of inventory valuation is:

• A) it gives a poor matching of current costs with current revenues
• B) its use accentuates the business cycle
• C) closing inventory on the balance sheet may be undervalued
• D) all of the above are disadvantages

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Definitions:

Smokestack Scrubbers

Pollution control devices that remove or neutralize harmful components from industrial exhaust gases before they are released into the atmosphere.

Harmful Chemicals

Substances that can cause damage to living organisms or the environment through exposure, inhalation, ingestion, or skin contact.

Fiedler's Contingency Model

A theory that proposes the effectiveness of a leader is dependent on the situational contex—the match between the leader's style of leadership and the degree to which the situation gives the leader control.

Leadership Style

A categorization of the way a leader guides, motivates, and manages a team or organization.