When Prices Are Falling

question 74

Multiple Choice

When prices are falling:

• A) LIFO will result in lower income and a lower ending inventory than will FIFO.
• B) LIFO will result in lower income and a higher ending inventory than will FIFO.
• C) LIFO will result in higher income and a lower ending inventory than will FIFO.
• D) LIFO will result in higher income and a higher ending inventory than will FIFO.

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Definitions:

Computer

An electronic device that can be programmed to perform a variety of tasks through the execution of stored instructions or software.

Volatile

A keyword used in programming languages to indicate that a variable's value may be changed by elements outside of the control of the program.

Main Memory

The primary volatile memory in a computer where programs and data in current use are kept so they can be quickly reached by the computer's processor.

ALU

ALU stands for Arithmetic Logic Unit, a crucial component of the CPU that handles arithmetic and logic operations.