Question

Which of the following statements about inventory costing methods is correct?

A) A change in inventory method is allowed only if it improves the accuracy of the companys financial results.

B) During a period of rising prices, LIFO results in a higher income tax expense than does FIFO.

C) International Financial Reporting Standards (IFRS) allow the use of LIFO but not FIFO.

D) In the U.S., if a company uses LIFO on the income tax return, it may use a different method for financial reporting.

Answer

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