A Change from FIFO to LIFO in a Period of Rising

question 109

Multiple Choice

A change from FIFO to LIFO in a period of rising prices will

• A)decrease both the current ratio and the inventory turnover ratio.
• B)increase both the current ratio and the inventory turnover ratio.
• C)increase the current ratio and decrease the inventory turnover ratio.
• D)decrease the current ratio and increase the inventory turnover ratio.

Analyze production possibilities and determine the marginal product of additional workers.

Understand the impact of capital costs on firms' choice of production techniques.

Calculate the marginal product of labor using its formula.

Understand the implications of the law of diminishing marginal returns in production.