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 valuation, compared to Company D's, would be:

	Gross Profit		Inventory Valuation
a.	higher		higher
b.	higher		lower
c.	lower		lower
d.	lower		higher

Multiple Choice

• Option A

• Option C

• Option D

• Option B