LIFO.1

A LIFO liquidation, in periods of rising costs, will cause gross profit and net income to increase because:

A. More recent, higher costs are matched against revenue.

B. More recent, lower costs are matched against revenue.

C. Older, higher costs are matched against revenue.

D. Older, lower costs are matched against revenue.

LIFO. 2

Com Con. uses the retail method of estimating inventory--maintaining inventory under LIFO. Which of the following are NOT included in the denominator of the cost-to-retail conversion percentage.

A. Freight In

B. Purchases

C. Net markdowns

D. All are included in the denominator