If Inventory Costs Are Decreasing, Profit Will Be Highest If

question 38

Multiple Choice

If inventory costs are decreasing, profit will be highest if the inventory method used is:

• A) FIFO.
• B) LIFO.
• C) weighted average.
• D) It is not possible to answer the question.

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Definitions:

Specific Performance

A legal remedy requiring a party to fulfill their exact obligations under a contract, rather than simply providing monetary damages for failure to do so.

Lien

A legal right or claim against a property by a creditor to ensure the payment of a debt.

Rescission

The revocation of a contract or agreement.

Damages

Monetary compensation required to be paid as a result of loss or injury due to a breach of contract or a tort.