Company a Is Identical to Company B in Every Regard

question 105

Multiple Choice

Company A is identical to Company B in every regard except that Company A uses FIFO and Company B uses LIFO. In an extended period of rising inventory costs, Company A's gross profit and inventory turnover ratio, compared to Company B's, would be:

• A)Option a
• B)Option b
• C)Option c
• D)Option d

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