Company a Is Identical to Company B in Every Regard

question 64

Multiple Choice

Company A is identical to Company B in every regard except that Company A uses FIFO and Company B uses LIFO.In an extended period of rising inventory costs,Company A's gross profit and inventory turnover,compared to Company B's,would be:
$$\begin{array} { l c c } & \text { Gross profit } & \text { Inventory turnover } \\\text { a. } & \text { Lower } & \text { Lower } \\\text { b. } & \text { Higher } & \text { Higher } \\\text { c. } & \text { Higher } & \text { Lower } \\\text { d. } & \text { Lower } & \text { Higher }\end{array}$$

• A)Option a
• B)Option b
• C)Option c
• D)Option d

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