Which of the Following Ratios Would NOT Be Positively Affected

question 14

Multiple Choice

Which of the following ratios would NOT be positively affected by a change from LIFO to FIFO,assuming that prices are rising?

• A) Current ratio
• B) Debt to equity ratio
• C) Times interest earned
• D) Quick ratio

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Definitions:

Total Job Cost

The sum of all costs assigned to a specific job or project, including direct materials, direct labor, and applied manufacturing overhead.

Overhead Applied

The allocation of indirect costs to products, jobs, or activities based on a predetermined rate.

Job A496

A specific work order or project identifier used to track and manage a particular job within a company.

Total Job Cost

The complete cost of a specific job or project, including materials, labor, and overhead.