Which Inventory Method Is Better Described as Having an Income

question 69

Multiple Choice

Which inventory method is better described as having an income statement focus and why is it considered as such?

• A)FIFO;better approximates the value of ending inventory.
• B)LIFO;better approximates the value of ending inventory.
• C)LIFO;better approximates inventory cost necessary to generate revenue.
• D)FIFO;better approximates inventory cost necessary to generate revenue.

---

Definitions:

Behavioral Economics

The study of psychology as it relates to the economic decision-making processes of individuals and institutions.

Organizational Scheme

A structured plan or system that outlines the arrangement of work and responsibilities within an organization.

Lavish Wedding

An extravagant and costly wedding celebration characterized by significant spending on decoration, venue, and other wedding aspects.

Prenuptial Agreement

A legal document signed before marriage outlining the division of assets should the marriage end.