If Inventory Costs Are Rising and a Company Is Using

question 139

Multiple Choice

If inventory costs are rising and a company is using LIFO,large purchases of inventory near the end of the year will:

• A)increase income taxes paid.
• B)decrease income taxes paid.
• C)not change the amount of income taxes paid.
• D)cannot be determined.

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Definitions:

CPFR

Collaborative Planning, Forecasting, and Replenishment, a business practice where trading partners work together to match supply and demand, improving inventory efficiency.

S&OP

Sales and Operations Planning; a process to align the company's demand plans with its production capabilities, operational and financial plans.

Logistical Problems

Issues or complications arising in the planning, implementation, and coordination of moving goods and services from producers to consumers.

Supply And Demand

The relationship between the availability of a product (supply) and the desire for that product (demand).