Which of the Following Is True Regarding Cost Flow Assumptions

question 8

Multiple Choice

Which of the following is true regarding cost flow assumptions?

• A)Manufacturing firms are required to use FIFO.
• B)Service firms are required to use LIFO.
• C)If a firm uses FIFO for tax purposes, then FIFO must be used for financial reporting purposes.
• D)If a firm uses LIFO for tax purposes, then LIFO must be used for financial reporting purposes.