When Prices Are Rising, Which Method of Inventory Will Result

question 119

Multiple Choice

When prices are rising, which method of inventory will result in the lowest cash outflow for income taxes?

• A) weighted average
• B) FIFO
• C) LIFO
• D) None of these; inventory methods do not affect the amount of income taxes.

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Definitions:

Conflict

A disagreement or clash between two or more parties due to differing opinions, interests, or values.

Organizations

Entities comprised of multiple individuals working together towards common goals or objectives, often structured to optimize efficiency and productivity.

Manifest Conflict

A type of conflict that is open and can be observed by others, often involving disagreements or disputes between individuals or groups.

Conflict

A situation or process in which there is a clash of interests, values, actions, or directions between individuals or groups.