Which of the Following Is True Regarding the Use of LIFO

question 70

Multiple Choice

Which of the following is true regarding the use of LIFO for inventory valuation?

• A)If LIFO is used for external financial reporting, then it must also be used for internal reports.
• B)For purposes of external financial reporting, LIFO may not be used with the lower of cost or market approach.
• C)If LIFO is used for external financial reporting, then it cannot be used for tax purposes.
• D)None of these.

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Definitions:

Learning Organization

An organization that prioritizes the continuous learning and development of its members to adapt and innovate.

Open-System Model

A business or organizational approach that focuses on external interactions, recognizing the dynamic exchange between the organization and its environment.

Organizational Life Cycle

The progression through which an organization evolves over time, typically consisting of stages such as startup, growth, maturity, and decline.

Equifinality

The concept that in open systems, a given end state can be reached by many potential means, indicating multiple paths to achieve the same goal.