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:

Respondent Behavior

A type of behavior that occurs as an automatic response to a specific stimulus, typically conditioned through association.

Operant Behavior

Behavior that is controlled by its consequences, including rewards and punishments, in the context of behaviorism.

Token Economy

A behavioral modification system where desired behaviors are reinforced with tokens that can be exchanged for rewards.

Collective Unconscious

The collective unconscious is a concept proposed by Carl Jung, referring to the part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.