In a Period of Rising Prices,the Liquidation of Base-Layer Inventory

question 10

Multiple Choice

In a period of rising prices,the liquidation of base-layer inventory will result in an unusually high income tax liability under which of the following methods?

• A)Specific identification
• B)Average-cost
• C)LIFO
• D)FIFO

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Definitions:

Behaviourism

A theory in psychology that asserts that behaviors are a result of the environment and stimuli, emphasizing observable and measurable behaviors over internal mental states.

Behaviourism

A psychological approach that emphasizes the study of observable behaviors and the environment's effect on behavior, minimizing the importance of mental states.

Skinner

B.F. Skinner, a pioneering figure in psychology who developed the theory of operant conditioning, emphasizing how behavior is influenced by its consequences.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior or for a chain of reasoning.