Why Are Some U

question 15

Multiple Choice

Why are some U.S.companies opposed to elimination of the LIFO inventory method?

• A)Inventory amounts are more difficult to calculate under FIFO.
• B)LIFO most likely matches actual flow of inventory.
• C)Increased tax burden.
• D)Most international companies use LIFO.

---

Definitions:

Cognitive Dissonance

A psychological discomfort experienced when an individual holds two or more contradictory beliefs, ideas, or values at the same time.

Escalation

The process of something becoming or being made more intense, severe, or serious.

Optimism

A mental attitude reflecting a belief or hope that the outcome of some specific endeavor, or outcomes in general, will be positive, favorable, and desirable.

Z Problem-solving Model

An approach to problem-solving that promotes collaboration among all stakeholders to find a solution that addresses the needs of all parties.