NO.PZ2017102901000045
问题如下:
Compared with a company that uses the FIFO method, during a period of rising unit inventory costs, a company using the LIFO method will most likely appear more:
选项:
A.
liquid.
B.
efficient.
C.
profitable.
解释:
B is correct.
During a period of rising inventory prices, a company using the LIFO method will have higher cost of cost of goods sold and lower inventory compared with a company using the FIFO method. The inventory turnover ratio will be higher for the company using the LIFO method, thus making it appear more efficient. Current assets and gross profit margin will be lower for the company using the LIFO method, thus making it appear less liquid and less profitable.
A选项错误:current asset包含inventory,如果是FIFO先进先出,价格上升的市场,剩余的inventory是价格较高的,那么current asset中的inventory高,current ratio就高。反之,在价格上升市场,LIFO方法对应的current ratio较低。
B选项正确:价格上升的市场,LIFO后进先出方法的COGS更高,inventory更低,COGS/inventory更高,即inventory turnover更高。运营效率看起来更好。
C选项错误:价格上升的市场,LIFO后进先出方法的COGS更高,gross profit和NI更低,因此并不是更profitable。
Rising cost, 则COGS更高,那这样不是应该卖出存货更多,更liquid嘛?