Which of the Following Statements Is Incorrect When Inventory Unit

question 108

Multiple Choice

Which of the following statements is incorrect when inventory unit costs are increasing?

• A)LIFO's cost of goods sold will be the largest among the inventory costing methods.
• B)LIFO's income tax will be the lowest among the inventory costing methods.
• C)Ending inventory using the average cost method will be larger than the ending inventory when the LIFO method is used.
• D)Cost of goods sold using the average cost method will be less than cost of goods sold when the FIFO method is useD.FIFO has the lowest cost of goods sold during a period of increasing unit costs.

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Definitions:

Natural World

Refers to the physical world and everything in it, such as plants, animals, mountains, oceans, and stars, as opposed to human creations or the virtual world.

Habitat Reduction

The decrease in the size of natural environments that support wildlife, often due to human activities like deforestation, urbanization, and agriculture expansion.

Species Threat

A situation or condition that endangers the survival or well-being of a particular species, often due to human activities or environmental changes.

Water Pollution

The contamination of water bodies, such as lakes, rivers, oceans, and groundwater, caused by harmful substances directly or indirectly discharged into them, leading to adverse effects on aquatic life and human health.