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:

Twentieth Century

The twentieth century is the period from January 1, 1901, to December 31, 2000, marked by significant global changes, including technological advancements, world wars, and shifts in political, social, and cultural landscapes.

Structural Functionalism

An outlook from sociology that sees society as an intricate system where its components collaborate to foster unity and maintain equilibrium.

Social System

An organized set of interrelated structures that establishes patterns of relationships and roles toward achieving a collective goal.

Latent Function

Unintended or unrecognized positive effects or outcomes of a social structure or institution.