Assuming purchase costs are declining and a periodic inventory system is used, determine the statements below which correctly describe what is happening to cost of goods sold under FIFO, LIFO and weighted average cost flow methods. (Check all that apply.) A. Companies using LIFO will report the smallest cost of goods sold B. Companies using FIFO will pay higher taxes than companies using LIFO, assuming all else being equal companies using FIFO will report the bhest gross profit and net income. C. Weighted average cost of goods sold will be between FIFO and LIFO costs of D. goods sold. companies using FIFO will report the smallest cost of goods sold.

Explanation:

 The first statement is Incorrect that Companies using LIFO will report the smallest cost of goods sold. Rest all the three statements that have been provided are correct.

Statement A - Incorrect

Statement B – Correct

Statement C – Correct

Statement D – correct the goods sold. companies using FIFO will report the smallest cost of goods sold.

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.