When a Firm Uses the LIFO Inventory Cost Flow Assumption

question 35

Multiple Choice

When a firm uses the LIFO inventory cost flow assumption:

• A) cost of goods sold will be greater than if FIFO were used.
• B) net income will be greater than if FIFO were used.
• C) cost of goods sold will be the same as if FIFO were used.
• D)better matching of revenue and expense is achieved than under FIFO.

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any learning needed.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.

Interstimulus Interval

The duration of time between the end of one stimulus and the beginning of another.

Conditioned Stimulus

A formerly neutral trigger that, upon association with an unconditioned stimulus, leads to eliciting a conditioned response.