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Company C is identical to Company D in every respect except that Company C uses LIFO and Company D uses average costs. In an extended
Company C is identical to Company D in every respect except that Company C uses LIFO and Company D uses average costs. In an extended period of rising inventory costs, Company C's gross profit and inventory turnover ratio, compared to Company D's, would be:
Gross profit | Inventory turnover | |
a. | higher | higher |
b. | higher | lower |
c. | lower | lower |
d. | lower | higher |
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