When Prices Are Rising, Valuing Ending Inventory Using the FIFO

question 9

Multiple Choice

When prices are rising, valuing ending inventory using the FIFO method rather than LIFO gives:

• A) inventory a higher value but lowers net income.
• B) inventory a lower value and also lowers net income.
• C) both inventory and net income a higher value.
• D) inventory a lower value and net income a higher value.

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Definitions:

Customer Service

The support and assistance provided by a company to those who buy or use its products or services.

Product Life Cycle

The progression of a product through different stages from introduction to growth, maturity, and decline in the market.

Laggard

Term used to describe a person, organization, or entity that is slow to adopt new technologies, practices, or innovations, often resistant to change.

Product Mix

The total range of products that a company offers to its customers, encompassing the diversity and variety of product lines and items available.