1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alenkinab [10]
2 years ago
14

If a company uses LIFO, a LIFO liquidation causes a company's income taxes to increase:_______

Business
1 answer:
olasank [31]2 years ago
4 0

Answer: a. When inventory purchase costs are rising.

Explanation:

Last In First Out is an inventory stock valuation method where newer inventory is sold first and older inventory are sold last.

When a LIFO liquidation occurs, it means that the company has sold off its new stock and are now selling the older one.

This will lead them to have a lower cost of goods sold as the older stock is usually cheaper. If Inventory purchase costs are increasing in the market, then sales prices will have to increase as well. The company will sell at this new price but will still have that lower cost of goods sold.

This means that they would have more profits as a result which will lead to more taxes being charged on them.

You might be interested in
2. If you run out of legal pads at home and there are several cases of legal pads at work, what
Tresset [83]

We have to ask our coworkers if they think it is okay if we take one.

Option C

<u>Explanation: </u>

In work ethics, workers are not permitted to work stationary for home use because the content is meant to be used for workplace purposes. A legal pad can be removed without permission from school, and stealing should therefore be discouraged. Consult with the store man in charge to permit you to take the office to be used at home.

In fact, materials at work are designed to enable people to do their job. Therefore you don't just steal items, you also every the workplace's capacity. And afterwards the time comes for the individual to work with the supplies that were missing. You rob profitability, thus.

7 0
3 years ago
Read 2 more answers
E
KonstantinChe [14]

Answer:

c is correct on

Explanation:

6 0
1 year ago
Read 2 more answers
According to surveys, the second largest expense of a typical American<br> consumer is
lesantik [10]

Answer:

Social Security

Explanation:

3 0
3 years ago
Read 2 more answers
ERIC: Hi, Hubert. This is my first economics course, and many of the concepts discussed in class are really confusing. Today the
Ymorist [56]

Answer:

ERIC: Hi, Hubert. This is my first economics course, and many of the concepts discussed in class are really confusing. Today the professor explained that the true cost of going to college includes both the tuition I pay as well as something called the "opportunity cost" of going to college. I don't understand. I pay $32,000 per year in tuition. The tuition is what I pay to the school, so it seems like that should be my true cost!

HUBERT: Hi, Eric. Many concepts in economics can be confusing at first. Let's talk it through.

Economists think of costs a bit differently than just the dollar amount that you pay. To an economist, the true cost of college includes the total value of what you give up in order to acquire your college education. In other words, not only did you give up the tuition money that you paid, but by attending college, you gave up opportunities to do other things with your time as well. This is where the idea of opportunity cost comes from.

The opportunity cost of your decision to go to college is the value of the next best alternative that you gave up. Suppose that your next best alternative to college is to work as a cashier. By not going to college, and taking this job, you could earn $16,000 per year. Then your opportunity cost of college is <u>$16,000</u>, and your total cost of a year of college is <u>$48,000</u> per year.

ERIC: I think I get it now. So when I take into account the opportunity cost of college, the true cost is actually <u>more </u>than just the tuition.

HUBERT: Correct. Thinking about costs in this way will help you make more rational decisions in your everyday life. Now tell me, how can you explain your decision to go to college?

ERIC: I chose to go to college because, for me, the value of a year in college <u>gives me a higher stand and offers me a better long-term opportunity that someone without a college degree.</u>

Explanation:

The question poses a discussion about the opportunity cost of attending college. The understanding behind this is that by choosing to go to college, Eric is forfeiting the opportunity to get a job as a cashier that would earn him $16,000 a year while incurring his college fees of $32,000. Therefore, the total cost of attending college to him should be $48,000.

3 0
3 years ago
A relatively small team of people who collaborate on the same project is called a:
agasfer [191]
Enterprise, it's called an enterprise
5 0
3 years ago
Other questions:
  • An HR manager for PepsiCo, a company known for its commitment to diversity, is seeking to hire employees who are very comfortabl
    12·1 answer
  • Tyler Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of
    6·1 answer
  • Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minu
    10·1 answer
  • "other things being​ equal, which market structure would produce the least output and the highest average product​ price
    5·1 answer
  • Why does supplier competition make it harder for an entrepreneur to be successful
    8·1 answer
  • The following information is available from the land account: Opening balance $270,000 Sold for $200,000 cash 170,000 credit ent
    14·1 answer
  • Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 5 pounds
    10·1 answer
  • Vibrant Company had $980,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $540,00
    7·1 answer
  • Rousey, Inc., had a cash flow to creditors of $16,380 and a cash flow to stockholders of $6,740 over the past year. The company
    15·1 answer
  • Kelly decided to accept the risk and purchased a high growth stock. Her returns for the past five years are 32 percent, 24 perce
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!