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mrs_skeptik [129]
2 years ago
9

Which of the following statements is not a characteristic of the LIFO method of pricing inventory? During a period of falling pr

ices, LIFO tends to maximize the amounts of income taxes owed The cost of goods sold is measured in relatively current costs Inventory is valued at relatively current costs During a period of rising prices, LIFO tends to minimize the amounts of income taxes owed
Business
1 answer:
Valentin [98]2 years ago
6 0

Answer:

Inventory is valued at relatively current costs

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold. Inventory would be made up of older purchases not valued at current costs

In periods of rising prices, LIFO  tends to minimise the amounts of income taxes owed because cost of goods would be higher due to inflation and this would reduce profit and hence taxes paid.

On the other hand, in periods of falling prices, LIFO tends to maximize the amounts of income taxes owed because cost of goods sold would be low and this would increase profit and hence taxes paid

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Which of the following statements is true?
borishaifa [10]

Answer:

A) The Heckscher-Ohlin model offers a reasonable explanation of the pattern of trade and the gains from trade.

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A) The Heckscher-Ohlin model mentions that some countries have capital products and some have labor work products. In that condition some countries might be producing capital products like cars and mobile phones however these countries might have less labor work products like agricultural products so that they can not produce enough food. In that sense there is a trade that occurs between two countries one having a capital like a car and others having a high food production so the trade gets balance thanks to this import and export of products. Basically, each country exports its products that they are leading whether it has capital good or labor work good and imports goods that they are lack of it whether it is capital or labor work products. Well, gains from trade happens thanks to this exchange.

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C) No, the Heckscher-Ohlin model explains the gain. Possible to gain from your goods. If a country produces capital good then gains from that or produce labor work good then gains from it by export to other countries that they have lack of that good.

D) The Ricardian trade model focuses only on labor work goods but Heckscher-Ohlin states that trade based on labor work goods and capital goods.

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