If inventory is being valued at cost and the price level is steadily rising, which of the three methods of costing— FIFO, LIFO, or weighted average cost—will yield the lowest annual income tax expense? Explain.

Which cost flow assumption generally results in the highest reported amount for ending inventory when inventory costs are rising? Explain.

Which of the following is not another way of describing the marginal propensity to consume?   a. autonomous consumption spending   b. the slope of the consumption function   c. the amount by which real consumption spending rises when real disposable income increases by one dollar   d. MPC   e. the change in real consumption spending divided by the change in real disposable income

In determining inventory's lower of cost or net realizable value, NRV is defined as: O Selling Cost O replacement cost Osales price less selling costs Sales Price