Which of the Following Statements Is Not Valid as It

question 19

Multiple Choice

Which of the following statements is not valid as it applies to inventory costing methods?

• A)If inventory quantities are to be maintained,part of the earnings must be invested plowed back)in inventories when FIFO is used during a period of rising prices.
• B)LIFO tends to smooth out the net income pattern,since it matches current cost of goods sold with current revenue,when inventories remain at constant quantities.
• C)When a firm using the LIFO method fails to maintain its usual inventory position reduces stock on hand below customary levels),there may be a matching of old costs with current revenue.
• D)The use of FIFO permits some control by management over the amount of net income for a period through controlled purchases,which is not true with LIFO.

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Definitions:

Strange Situation

A research method developed by Mary Ainsworth to assess attachment relationships between a caregiver and a child.

Attachment

An emotional bond that forms between individuals, particularly in the context of caregiver-child relationships, impacting future relational patterns.

Personality Matching

The concept that romantic or social compatibility between individuals can be predicted or enhanced based on certain traits or characteristics of their personalities.

Conscientiousness

A personality trait characterized by being organized, dependable, and showing a strong sense of duty.