Indicate Whether Each of the Following Statements Is True or False

question 57

Short Answer

Indicate whether each of the following statements is true or false.
_____ a) The FIFO cost flow method may only be used if the company actually rotates inventory so that the oldest inventory is sold first.
_____ b) In a period of rising prices, LIFO gives higher cost of goods sold than FIFO.
_____ c) Under the weighted average cost flow method, the cost per unit of ending inventory is equal to the cost per unit of inventory sold.
_____ d) In a period of declining prices, LIFO will result in lower income tax expense than FIFO.
_____ e) In a period of rising prices, FIFO gives higher ending inventory than LIFO does.

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Definitions:

Cones

The receptor cells in the retina that allow for color perception.

Light Sensitive

Having a sensitivity to light levels, often referring to materials or mechanisms that react or change in the presence of light.

Fovea

A small depression in the retina of the eye where visual acuity is highest due to a high concentration of cones.

Color Perception

The ability of the eye to distinguish objects based on the wavelengths of the light they reflect, emit, or transmit.