In a Period of Rising Prices, a Company Is Most

question 90

Multiple Choice

In a period of rising prices, a company is most likely to use the FIFO method of pricing inventory if:

• A) Each item in the inventory is unique.
• B) Management wants the same unit cost assigned to items sold and items remaining in inventory.
• C) Management's primary objective is to minimize income taxes.
• D) Management wants the company's income statement to indicate the highest possible amounts of gross profit and profit for the period.

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Definitions:

Legal Responsibilities

Encompasses the obligations that organizations and individuals have to abide by laws and regulations in their professional conduct.

Corporate Social Responsibility

A strategy for business that promotes sustainable development through ensuring economic, social, and environmental advantages for every stakeholder involved.

Diversity Practices

Strategies and policies implemented within organizations to promote and support diversity in the workplace environment.

Corporate Philanthropy

The efforts and resources donated by companies to various causes or organizations to promote welfare or social good.