Which of the Following Statements Is Correct When Inventory Unit

question 33

Multiple Choice

Which of the following statements is correct when inventory unit costs are decreasing?

• A)LIFO will result in lower net income and a higher inventory valuation than will FIFO.
• B)LIFO will result in higher net income and a higher inventory valuation than will FIFO.
• C)FIFO will result in higher net income and a higher inventory valuation than will LIFO.
• D)FIFO will result in higher net income and a lower inventory valuation than will LIFO.

---

Definitions:

Human Existence

The state or fact of living or having objective reality, typically considered within the context of what it means to be human.

Tranquil Mind

A state of mental calm and clarity, free from agitation, stress, or anxiety.

Unlimited Pleasure

The concept of seeking pleasure without any constraints or consideration of possible negative consequences.

Epicurus

An ancient Greek philosopher known for his emphasis on simple pleasures, friendship, and the pursuit of happiness through knowledge.