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ale4655 [162]
3 years ago
11

When comparing the results of LIFO and FIFO when inventory costs are​ decreasing: A. ending inventory will be higher using LIFO.

B. cost of goods sold will be higher using LIFO. C. ending inventory will be higher using FIFO. D. cost of goods sold will be lower using FIFO.
Business
2 answers:
Sever21 [200]3 years ago
7 0

Answer:

B. cost of goods sold will be higher using LIFO

Explanation:

If the inventory costs are going up, or are likely to increase,costing of LIFO may be better, because the cost items higher (the ones purchased or made last) are considered to be sold. This will results in lower profits and high costs.

Let us assume the opposite its true, and your inventory costs are sliding down, FIFO costing may be better. Since prices usually goes up, most businesses will prefer to use LIFO costing.

Usimov [2.4K]3 years ago
4 0

Answer:

B.

Explanation:

LIFO takes the latest cost of goods into account and leads to rising cost of goods produced or purchased. This in turn leads to lower gross profit. Conversely, FIFO takes into account oldest cost of goods purchased or produced and lower cost of goods sold, thus higher gross profit.

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Wendell Company provided the following pertaining to its recent year of operation:
myrzilka [38]

Answer:

Option (B) is correct.

Explanation:

Wendell's total stockholders' equity increase during the recent year of operation:

= Issued common stock - Cash dividend declared + Net Income - Stock dividend distributed + Sale of treasury stock below cost

= $50,000 - $20,000 + $70,000 - $23,000 + $7,000

= $84,000

Therefore, Wendell's total stockholders' equity increase by $84,000.

3 0
3 years ago
Two goods are considered to be related goods by many buyers: if the price of one increases, buyers buy more of the other. This i
vovikov84 [41]

Answer: False.

Explanation:

False.

This indicates that the two goods are substitute goods, not the complementary goods.

In case of complementary goods, the price of one good is inversely related with the demand for other related good. For example, car and petrol; if the price of petrol increases as a result demand for cars decreases.

In case of substitute goods, the price of one good is directly related with the demand for other related good. For example, tea and coffee; if the price of coffee increases as a result demand for tea increases. So, there is a positive relationship between the price of one good and demand for the other good.

3 0
2 years ago
Which statement does not accurately describe a characteristic of cash value for whole life insurance?
otez555 [7]
If this question has the same list of choices as the ones posted before, the statement that does not accurately describe a characteristic of cash value for whole life insurance is:
 "<span>Policy that accumulates cash value is less expensive than a policy that does not accumulate cash value."</span>
3 0
3 years ago
The unemployment rate is the percentage of the: Group of answer choices population that is unemployed. adult population that is
IRINA_888 [86]

Answer:

labor force that is unemployed.

Explanation:

Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed.

The unemployment rate is divided into various types, these include;

1. Cyclical unemployment rate (CU).

2. Frictional unemployment rate (FU),

3. Structural unemployment rate (SU).

4. Actual unemployment rate (AU).

5. Natural Rate of Unemployment (NU).

Hence, the unemployment rate is the percentage of the labor force that is unemployed.

8 0
3 years ago
Read 2 more answers
Poppy is a sales manager for Shimmer Sisters Cosmetics. She told her team she expects each of them to increase their customer in
goldfiish [28.3K]

Answer:

Perfomance standard

Explanation:

A performance standard is a management-approved expression of the performance threshold(s), requirement(s), or expectation(s) that must be met to be appraised at a particular level of performance.

4 0
3 years ago
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