Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. what is an advantage of using the fifo inventory c

What is an advantage of using the FIFO inventory cost flow assumption? a. In periods...

50.1K

Verified Solution

Question

Accounting

What is an advantage of using the FIFO inventory cost flow assumption? a. In periods of rising prices, FIFO results in the inventory value on the balance sheet that is closest to current cost. b. In periods of rising prices, FIFO results in lower income taxes. c. In periods of rising prices, FIFO results in lower net income. d. Inventory cost under FIFO is more difficult to track.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Mechanical Engineering
1.2K views

Hello. My question is what is the equation of magnetic attraction force to iron? How it...

Finance
1.2K views

Suppose the corporate tax rate is 35%. Consider a firm that earns $2,000 in earnings before...

Biology
1.2K views

Several blotting techniques are used to detect cellular macromolecules. Which of the following correctly links...

Geometry
1.2K views

Joey has a credit card that uses the previous balance method The opening balance of...

Basic Math
1.2K views

Question 3 Enter the ratio as a fraction in lowest terms no decimals 0 13...

Basic Math
1.2K views

Letr be the following relation on the set Z cry if and only if y...

Basic Math
1.2K views

Simplify the following expression 180 90

Accounting
1.2K views

On May 1, 2021, Coronado Industries issued $1460000 of 7% bonds at 103 , which...

Accounting
1.2K views

Requlred Information Problem 20-1A (Algo) Weighted average: Cost per equivalent unit; costs assigned to...

Accounting
1.2K views

Wendells Donut Shoppe is investigating the purchase of a new $40,000 donut-making machine. The new...

Accounting
1.2K views

"I know headquarters wants us to add that new product IIne," sald Dell Havasl, manager...

Accounting
1.2K views

This year, Sooner Company reports a deficit in current E\&P of ($368,000). Its accumulated E\&P...