When would using the FIFO inventory costing method produce higher inventory account balances than the LIFO method

Question:

When would using the FIFO inventory costing method produce higher inventory account balances than the LIFO method would?
A. Inflationary times
B. Deflationary times
C. Always
D. Never

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Accounting Volume 1 Financial Accounting

ISBN: 9781593995942

1st Edition

Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax

See More Books

Question Posted: Aug 15, 2022 02:50 AM

See More Questions

The FIFO inventory costing method (when using a perpetual inventory system) assumes that the cost of the earliest units purchased is allocated in which of the following ways? First to be allocated to...
Davidson Hardware used the FIFO inventory costing method in 2015. Davidson plans to continue using the FIFO method in future years. Which accounting principle is most relevant to Davidsons decision?
Flay Foods has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Flay decided to change to the LIFO method. As a result of the...
A force F = (3.00 N)i + (7.00 N)j + (7.00 N)k acts on a 2.00 kg mobile object that moves from an initial position of di = (3.00 m)i (2.00 m)i + (5.00 m)k to a final position of df = (5.00 m)i +...
Why do economists use market values when calculating GDP? What is the economic rationale for giving high-value items more weight in GDP than low-value items?
Smolira Golf has 10,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2016 was $73. What is the price-earnings ratio? What is the price-sales ratio? What...
Your product is clearly not as good as the competition. The customer has been loyal to your company for years, but you will not come out with a replacement of your existing equipment for at least a...
The following comment appeared in the financial press: Inadequate financial disclosure, particularly with respect to how management views the future and its role in the marketplace, has always been a...
Bonita Industries sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $100 and a...
Edward and Stephanie Create are a couple in their 50s. They have twins, Anna and Juan, who are 27 and independent. They have no debt. Create a sample investment portfolio for Edward and Stephanie,...
Use the last-in, first-out method (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) Sales revenue (b) Cost of goods sold (c) Gross margin for B75 Company, considering...
Bleistine Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume...
Grammy is considering purchasing Warehouse Distribution, Inc., a small- to medium-sized warehouse distributor in Nashville, Tennessee. She wants a national distribution system to deliver product to...
Hoes does social media create a relationship between buyer and seller?
What are the components that make up a radio script?
What does interactive media focus on?
Social media has a diverse array of promotional vehicles. What are some of the most common, and how can each help promote the key consumer benefit?
When should brands consider using magazine advertising?
On December 31, 2012, Paxon Corporation acquired 80 percent of the outstanding common stock of the Saxon Company for $1 billion cash. The balance sheets of Paxon and Saxon, immediately prior to the...
Dr. Chan obtained a $15,000 demand loan at prime plus 1.5% on September 13 from the Bank of Montreal to purchase a new dental X-ray machine. Fixed payments of $700 will be deducted from the dentists...
How is the amount of a charitable contribution of capital gain property determined if it is donated to a private non-operating foundation? How does this determination differ if capital gain property...
May an individual who is married and files a joint return deduct any charitable contributions if the itemized deductions total $7,000 (of which $3,000 are qualified charitable contributions)?
For individuals, what is the overall deduction limitation on charitable contributions? What is the limitation for corporations?
For each of the following languages over the alphabet {0, 1}, give a regular expres- sion that describes that language, and briefly argue why your expression is correct. (a) All strings that begin...
1. lan Bremmer mentions that our identities are determined by algorithms. Do you agree? Are there any algorithms that have influenced your identity? 2. On the topic of privacy, Chew talks about how...
Describe the two unit of payment strategies that UK uses to contain costs compared to the US.You must explain how this affects the components of the iron triangle in UK?

When would using the FIFO inventory costing method produce higher inventory account balances than the LIFO method

Question:

Step by Step Answer:

C Always I applied the FIFO costing method to inventory cost...View the full answer

Principles Of Accounting Volume 1 Financial Accounting

Students also viewed these Business questions