Question
Assuming inventory costs are rising over time and new inventory layers are being added, indicate using a checkmark () whether, if applicable, the LIFO or
Assuming inventory costs are rising over time and new inventory layers are being added, indicate using a checkmark () whether, if applicable, the LIFO or FIFO method would give the desired effect for the pattern described in a given year. If the inventory costing method does not affect the pattern described, select no effect. Only one checkmark should be shown per row.
| All else being equal, when inventory costs are rising, which method would yield the | FIFO | LIFO | No Effect |
a. | Lowest cost of goods sold |
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b. | Highest sales revenue |
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c. | Lowest net income |
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d. | Highest gross margin |
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e. | Lowest ending inventory |
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f. | Highest income tax expense |
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