A firm using FIFO had a beginning inventory of $48,000, an ending inventory of $56,000, and a pretax income of $400,000 . If it had used LIFO, its beginning inventory would have been $20,000, and its ending inventory would have been $16,000 . From the information provided, one can conclude that:
a. quantities increased and prices decreased.
b. quantities decreased and prices increased.
c. prices increased but we cannot conclude what happened to quantities.
d. quantities decreased but we cannot conclude what happened to prices.
e. not enough information to reach a conclusion.
B
You might also like to view...
When a firm's product delivers unique value because of an actual or perceived uniqueness in a broad market, it is said to have a cost-leadership advantage
Indicate whether the statement is true or false
Describe the typical organization chart. What is a horizontal relationship compared to a vertical one? A solid line versus a dotted one?
What will be an ideal response?
Contentious jurisdiction is the power of the ICJ to give opinions about issues of international law at the request of the United Nations or one of its specialized agencies
Indicate whether the statement is true or false
Identify the considerations the United States Supreme Court outlined for calculating punitive damages