Under the Dollar-Value LIFO Retail Method, to Determine the Value

question 49

Multiple Choice

Under the dollar-value LIFO retail method, to determine the value of a LIFO layer:

• A) Divide the LIFO layer by the layer-year price index and multiply by the layer-year cost-to-retail percentage.
• B) Multiply the LIFO layer by the base year price index and the current year cost-to-retail percentage.
• C) Multiply the LIFO layer by the layer-year price index and by the layer-year cost-to-retail percentage.
• D) Divide the LIFO layer by the layer-year cost-to-retail percentage and multiply by the layer-year price index.

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Definitions:

Drought Conditions

an extended period of deficient rainfall resulting in water shortages that can affect agricultural production, water supply, and overall ecological systems.

Economic Order Quantity

A calculated order size that minimizes the total cost of holding and ordering inventory.

Orders per Year

This metric calculates the number of orders placed with a company or within a supply chain system within a year, indicating the demand or sales volume.

Price Discount

A reduction from the original or standard price of a product or service, often used to stimulate sales or clear out inventory.