If a Firm Changes Its Inventory Method from FIFO to LIFO

question 17

Multiple Choice

If a firm changes its inventory method from FIFO to LIFO just prior to a period of rising prices,the effect in the next period will be Current Ratio Inventory Turnover

• A) No effect Increase
• B) No effect Decrease
• C) Increase Decrease
• D) Decrease Increase

---

Definitions:

Normative Decision Model

The Normative Decision Model is a leadership theory that suggests the optimal decision-making process is determined by assessing different situations and choosing the most effective decision-making style.

Autocratic Decision

A decision-making style where the leader unilaterally decides without input or consultation from others.

Participative Leadership

A leadership style where the leader involves team members in decision-making processes, valuing their input and fostering collaboration.

Higher Satisfaction

relates to an elevated level of contentment or fulfillment, often in reference to job, life, or specific experiences.