In Periods of Rising Purchase Prices and Increasing Inventory Quantities

question 31

Multiple Choice

In periods of rising purchase prices and increasing inventory quantities, LIFO results in a _____ than either FIFO or the weighted-average cost-flow assumption.

• A)higher cost of goods sold; lower reported periodic income; lower current income taxes
• B)lower cost of goods sold; lower reported periodic income; lower current income taxes
• C)higher cost of goods sold; higher reported periodic income; lower current income taxes
• D)higher cost of goods sold; higher reported periodic income; higher current income taxes
• E)a lower cost of goods sold; higher reported periodic income; higher current income taxes

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Definitions:

Stakeholders

Individuals or groups that have an interest, concern, or stake in an organization and its activities, including employees, customers, suppliers, investors, and the community.

Long-term Equity

Investment in stocks or shares that are held for an extended period to benefit from their potential growth in value over time.

Continuous Reinvestment

The practice of continually reinvesting profits or earnings back into the business, project, or portfolio to promote growth and expansion.

Competitive Disadvantage

A condition or circumstance that puts a company at a less favorable position in the market compared to its competitors.