Why would management prefer to use lifo over fifo

Reference no: EM131527723

Question: Assume that a firm separately determined inventory under fifo and lifo and then compared the results.

1. In each space below, place the correct sign [less than (<), greater="" than=""><), or="" equal="" (=")]" for="" each="" comparison,="" assuming="" periods="" of="" rising="">

a. Lifo inventory _________ Fifo Inventory

b. Lifo cost of goods sold _________ Fifo cost of goods sold

c. Lifo net income _________ Fifo net income

d. Lifo income tax _________ Fifo income tax

2. Why would management prefer to use lifo over fifo in periods of rising prices?

Reference no: EM131527723

Questions Cloud

What is your dollar return for the past year : One year ago you bought Superior stock for $83.00 per share. What is your dollar return for the past year? What is the capital gains yield?

Develop a program that targets a younger audience : The United States military conducts annually cohort surveys in order to assess the effectiveness of previously instituted training and guidelines.

The elements of a hostile work environment harassment claim : What are the elements of a hostile work environment harassment claim? Can John potentially satisfy the elements of a hostile work environment harassment claim?

Supply curve from the total cost function : A firm has the following cost function: C = 30 - 14Q + Q2. Derive the firm's supply curve from the total cost function.

Why would management prefer to use lifo over fifo : Assume that a firm separately determined inventory under fifo and lifo and then compared the results.

Calculate the zero-coupon bond yield curve : Calculate the zero-coupon bond yield curve and the implied 1-period forward rates embedded in this yield curve.

Latest developments in health reform : 1. Describe one (1) concept that will be affected most by the latest developments in health reform.

How can we identify security risks and assess their levels : So, how can we identify security risks, assess their levels, implement appropriate tests and other controls, and report security test results based on risk?

What is the estimated internal rate of return of the project : Calculate the annual after-tax operating cash flow for Years 1 -4. What is the estimated Internal Rate of Return (IRR) of the project?

User Account

All Pages