One advantage of the lifo method is that
a.) an equal cost is assigned to each unit so net income doesn't fluctuate as much as with other methods
b.) flow of goods and flow of costs are the same
c.) it matches current selling prices and current costs
d.) ending inventory is valued at very old costs

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine