The Primary Reason for the Popularity of LIFO Is That

question 139

Multiple Choice

The primary reason for the popularity of LIFO is that it gives:

• A)Better matching of physical flow and cost flow.
• B)A lower income tax obligation when inventory costs are rising.
• C)Simplified recordkeeping.
• D)A simpler method to apply.

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Definitions:

Current Stock Price

The price at which a stock is trading on the public market at any given time.

Market Rate of Return

The average annual return generated from a market or a specific investment over a specific period, often considered a benchmark.

Annual Dividend

The total payment a company makes to its shareholders out of its profits over the course of a year.

Dividend Growing

A situation where a company consistently increases the amount of dividends paid to shareholders over time.