Question: 7. If inventory levels are stable or increasing an argument that favors the FIFO method as compared to LIFO is a. Income taxes tend to

7. If inventory levels are stable or increasing an argument that favors the FIFO method as compared to LIFO is a. Income taxes tend to be reduced in periods of rising prices b. Cost of goods sold tends to be stated at approximately current cost in the income statement c. Cost assignments typically parallel the physical ow of the goods d. Income tends to be smoothed as prices change Answer c

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