Comparing inventory methods assume that a firm separately determined inventory under fifo and lifo and then compared the results. a. in each dropdown that follows, select the correct sign [less than ( < ), greater than (> ), or equal (=)] for each comparison, assuming periods of rising prices. 1. fifo inventory lifo inventory 2. fifo cost of goods sold lifo cost of goods sold 3. fifo net income lifo net income 4. fifo income taxes lifo income taxes b. why would management prefer to use lifo over fifo in periods of rising prices? income shown on the company’s tax return would be lower if lifo rather than fifo is used. income shown on the company’s tax return would be higher if lifo rather than fifo is used. cost of goods sold shown on the company’s income statement would be lower if lifo rather than fifo is used. dividends shown on the company’s financial statements would be higher if lifo rather than fifo is used.

The distinction between a normal and an inferior good is

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.

White truffles are a very prized and rare edible fungus that grow naturally in the countryside near alba, italy. suppose that it costs $200 per day to search for white truffles. on an average day, the total number of white truffles (t) found in alba is t = 20x − x 2 , where x is the number of people searching for white truffles on that day. white truffles can be sold for $100 each. if there is no regulation, how many more people will be searching for white truffles than the socially optimal number?