Question Solved1 Answer Moving to another question will save this response. Question 6 In a period of inflation, the cost flow method that results in the lowest income taxes is the: O A. LIFO method OB. FIFO method OC. Gross profit method O D. Average-cost method A Moving to another question will save this response. ⓇAM

EMIOCF The Asker · Accounting

Transcribed Image Text: Moving to another question will save this response. Question 6 In a period of inflation, the cost flow method that results in the lowest income taxes is the: O A. LIFO method OB. FIFO method OC. Gross profit method O D. Average-cost method A Moving to another question will save this response. ⓇAM
More
Transcribed Image Text: Moving to another question will save this response. Question 6 In a period of inflation, the cost flow method that results in the lowest income taxes is the: O A. LIFO method OB. FIFO method OC. Gross profit method O D. Average-cost method A Moving to another question will save this response. ⓇAM
See Answer
Add Answer +20 Points
Community Answer
86AEIV The First Answerer
See all the answers with 1 Unlock
Get 4 Free Unlocks by registration

General GuidanceThe answer provided below has been developed in a clear step by step manner.Step: 1.lcWjel{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;font-size:0.75rem;box-sizing:border-box;}/*!sc*/ data-styled.g365[id="sc-mwpquf-0"]{content:"lcWjel,"}/*!sc*/ .loOCZZ{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;}/*!sc*/ .loOCZZ .align-left{text-align:left;}/*!sc*/ .loOCZZ .align-center{text-align:center;}/*!sc*/ .loOCZZ .align-right{text-align:right;}/*!sc*/ data-styled.g366[id="sc-mwpquf-1"]{content:"loOCZZ,"}/*!sc*/ .cpESDm .DraftEditor-editorContainer,.cpESDm .DraftEditor-root,.cpESDm .public-DraftEditor-content{height:inherit;text-align:initial;}/*!sc*/ .cpESDm .public-DraftEditor-content[contenteditable='true']{-webkit-user-modify:read-write-plaintext-only;}/*!sc*/ .cpESDm .DraftEditor-root{position:relative;}/*!sc*/ .cpESDm .DraftEditor-editorContainer{background-color:rgba(255,255,255,0);border-left:0.1px solid transparent;position:relative;z-index:1;}/*!sc*/ .cpESDm .public-DraftEditor-block{position:relative;}/*!sc*/ .cpESDm .DraftEditor-alignLeft .public-DraftStyleDefault-block{text-align:left;}/*!sc*/ .cpESDm .DraftEditor-alignLeft .public-DraftEditorPlaceholder-root{left:0;text-align:left;}/*!sc*/ .cpESDm .DraftEditor-alignCenter .public-DraftStyleDefault-block{text-align:center;}/*!sc*/ .cpESDm .DraftEditor-alignCenter .public-DraftEditorPlaceholder-root{margin:0 auto;text-align:center;width:100%;}/*!sc*/ .cpESDm .DraftEditor-alignRight .public-DraftStyleDefault-block{text-align:right;}/*!sc*/ .cpESDm .DraftEditor-alignRight .public-DraftEditorPlaceholder-root{right:0;text-align:right;}/*!sc*/ .cpESDm .public-DraftEditorPlaceholder-root{color:#9197a3;position:absolute;width:100%;z-index:1;}/*!sc*/ .cpESDm .public-DraftEditorPlaceholder-hasFocus{color:#bdc1c9;}/*!sc*/ .cpESDm .DraftEditorPlaceholder-hidden{display:none;}/*!sc*/ .cpESDm .public-DraftStyleDefault-block{position:relative;white-space:pre-wrap;}/*!sc*/ .cpESDm .public-DraftStyleDefault-ltr{direction:ltr;text-align:left;}/*!sc*/ .cpESDm .public-DraftStyleDefault-rtl{direction:rtl;text-align:right;}/*!sc*/ .cpESDm .public-DraftStyleDefault-listLTR{direction:ltr;}/*!sc*/ .cpESDm .public-DraftStyleDefault-listRTL{direction:rtl;}/*!sc*/ .cpESDm .public-DraftStyleDefault-ol,.cpESDm .public-DraftStyleDefault-ul{margin:16px 0;padding:0;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth0.public-DraftStyleDefault-listLTR{margin-left:1.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth0.public-DraftStyleDefault-listRTL{margin-right:1.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth1.public-DraftStyleDefault-listLTR{margin-left:3em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth1.public-DraftStyleDefault-listRTL{margin-right:3em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth2.public-DraftStyleDefault-listLTR{margin-left:4.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth2.public-DraftStyleDefault-listRTL{margin-right:4.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth3.public-DraftStyleDefault-listLTR{margin-left:6em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth3.public-DraftStyleDefault-listRTL{margin-right:6em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth4.public-DraftStyleDefault-listLTR{margin-left:7.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth4.public-DraftStyleDefault-listRTL{margin-right:7.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-unorderedListItem{list-style-type:square;position:relative;}/*!sc*/ .cpESDm .public-DraftStyleDefault-unorderedListItem.public-DraftStyleDefault-depth0{list-style-type:disc;}/*!sc*/ .cpESDm .public-DraftStyleDefault-unorderedListItem.public-DraftStyleDefault-depth1{list-style-type:circle;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem{list-style-type:none;position:relative;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-listLTR:before{left:-36px;position:absolute;text-align:right;width:30px;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-listRTL:before{position:absolute;right:-36px;text-align:left;width:30px;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem:before{content:counter(ol0) '. ';counter-increment:ol0;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-depth1:before{content:counter(ol1,lower-alpha) '. ';counter-increment:ol1;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-depth2:before{content:counter(ol2,lower-roman) '. ';counter-increment:ol2;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-depth3:before{content:counter(ol3) '. ';counter-increment:ol3;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-depth4:before{content:counter(ol4,lower-alpha) '. ';counter-increment:ol4;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth0.public-DraftStyleDefault-reset{counter-reset:ol0;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth1.public-DraftStyleDefault-reset{counter-reset:ol1;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth2.public-DraftStyleDefault-reset{counter-reset:ol2;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth3.public-DraftStyleDefault-reset{counter-reset:ol3;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth4.public-DraftStyleDefault-reset{counter-reset:ol4;}/*!sc*/ .cpESDm .public-DraftStyleDefault-ltr{text-align:inherit;}/*!sc*/ .cpESDm .public-DraftStyleDefault-rtl{text-align:inherit;}/*!sc*/ data-styled.g369[id="sc-mwpquf-4"]{content:"cpESDm,"}/*!sc*/ .jhimFq{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;box-sizing:border-box;border:2px solid transparent;}/*!sc*/ .jhimFq h2{font-size:16px;}/*!sc*/ .jhimFq h3{font-size:14px;}/*!sc*/ data-styled.g370[id="sc-mo29cs-0"]{content:"jhimFq,"}/*!sc*/ .iQAUeM{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-flex-direction:column;-ms-flex-direction:column;flex-direction:column;gap:16px;}/*!sc*/ data-styled.g579[id="sc-z3f5s1-0"]{content:"iQAUeM,"}/*!sc*/ .bVFlsN{margin:0;}/*!sc*/ data-styled.g584[id="sc-1swtczx-0"]{content:"bVFlsN,"}/*!sc*/ .gpAhdE{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;line-height:normal;}/*!sc*/ data-styled.g598[id="sc-1sugbjn-0"]{content:"gpAhdE,"}/*!sc*/ When there is inflation, the cost of goods sold will see an increase and by how much the cost will rise will depend on the assumption of cost flow.Explanation:Please refer to solution in this step.Step: 2.lcWjel{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;font-size:0.75rem;box-sizing:border-box;}/*!sc*/ data-styled.g365[id="sc-mwpquf-0"]{content:"lcWjel,"}/*!sc*/ .loOCZZ{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;}/*!sc*/ .loOCZZ .align-left{text-align:left;}/*!sc*/ .loOCZZ .align-center{text-align:center;}/*!sc*/ .loOCZZ .align-right{text-align:right;}/*!sc*/ data-styled.g366[id="sc-mwpquf-1"]{content:"loOCZZ,"}/*!sc*/ .cpESDm .DraftEditor-editorContainer,.cpESDm .DraftEditor-root,.cpESDm .public-DraftEditor-content{height:inherit;text-align:initial;}/*!sc*/ .cpESDm .public-DraftEditor-content[contenteditable='true']{-webkit-user-modify:read-write-plaintext-only;}/*!sc*/ .cpESDm .DraftEditor-root{position:relative;}/*!sc*/ .cpESDm .DraftEditor-editorContainer{background-color:rgba(255,255,255,0);border-left:0.1px solid transparent;position:relative;z-index:1;}/*!sc*/ .cpESDm .public-DraftEditor-block{position:relative;}/*!sc*/ .cpESDm .DraftEditor-alignLeft .public-DraftStyleDefault-block{text-align:left;}/*!sc*/ .cpESDm .DraftEditor-alignLeft .public-DraftEditorPlaceholder-root{left:0;text-align:left;}/*!sc*/ .cpESDm .DraftEditor-alignCenter .public-DraftStyleDefault-block{text-align:center;}/*!sc*/ .cpESDm .DraftEditor-alignCenter .public-DraftEditorPlaceholder-root{margin:0 auto;text-align:center;width:100%;}/*!sc*/ .cpESDm .DraftEditor-alignRight .public-DraftStyleDefault-block{text-align:right;}/*!sc*/ .cpESDm .DraftEditor-alignRight .public-DraftEditorPlaceholder-root{right:0;text-align:right;}/*!sc*/ .cpESDm .public-DraftEditorPlaceholder-root{color:#9197a3;position:absolute;width:100%;z-index:1;}/*!sc*/ .cpESDm .public-DraftEditorPlaceholder-hasFocus{color:#bdc1c9;}/*!sc*/ .cpESDm .DraftEditorPlaceholder-hidden{display:none;}/*!sc*/ .cpESDm .public-DraftStyleDefault-block{position:relative;white-space:pre-wrap;}/*!sc*/ .cpESDm .public-DraftStyleDefault-ltr{direction:ltr;text-align:left;}/*!sc*/ .cpESDm .public-DraftStyleDefault-rtl{direction:rtl;text-align:right;}/*!sc*/ .cpESDm .public-DraftStyleDefault-listLTR{direction:ltr;}/*!sc*/ .cpESDm .public-DraftStyleDefault-listRTL{direction:rtl;}/*!sc*/ .cpESDm .public-DraftStyleDefault-ol,.cpESDm .public-DraftStyleDefault-ul{margin:16px 0;padding:0;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth0.public-DraftStyleDefault-listLTR{margin-left:1.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth0.public-DraftStyleDefault-listRTL{margin-right:1.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth1.public-DraftStyleDefault-listLTR{margin-left:3em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth1.public-DraftStyleDefault-listRTL{margin-right:3em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth2.public-DraftStyleDefault-listLTR{margin-left:4.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth2.public-DraftStyleDefault-listRTL{margin-right:4.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth3.public-DraftStyleDefault-listLTR{margin-left:6em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth3.public-DraftStyleDefault-listRTL{margin-right:6em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth4.public-DraftStyleDefault-listLTR{margin-left:7.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth4.public-DraftStyleDefault-listRTL{margin-right:7.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-unorderedListItem{list-style-t ... See the full answer