Which inventory method might a company use if it wants to minimize taxable income during periods of inflation?

• Average cost
• LIFO
• Specific identification
• FIFO

Related MCQs

• Which inventory costing method can result in lower income taxes during periods of inflation?
• The man’s taxable income is Rs. 14,280/-. The state tax instructions tell him to pay 2% on the first Rs. 3000/- of his taxable income, 3% on each of the second and third Rs. 3000/- and 4% on the remainder. What is the total amount of income tax that he must pay?
• In periods of rising prices, which inventory method yields the highest gross profit?
• Which inventory costing method might a company use to match actual physical flow of goods?
• Which inventory method may result in outdated inventory costs on the balance sheet?
• The NBC Company reports net income of $60,000. If partners N, B, and C have an income ratio of 50%, 30%, and 20%, respectively, C's share of the net income is _____?
• Which inventory method assumes that the newest inventory items are sold first?
• Which inventory method assumes that the oldest inventory items are sold first?
• T-shirt City uses a periodic inventory system. During the first year of operations, the company made four purchases of a particular product. Each purchase was for 500 units and the prices paid were $9 per unit in the first purchase, $10 per unit in the second purchase, $12 per unit in the third purchase, and $13 per unit in the fourth purchase. At the year-end, 650 of these units remained unsold. Compute the cost of goods sold under the FIFO method and LIFO method, respectively.
• If the cash from operating activities consistently greater than the company's net income, the company's net earnings are of a/an ______ quality.