In Order to Prevent Companies from Selecting Inventory Costing Methods

question 81

Multiple Choice

In order to prevent companies from selecting inventory costing methods just to avoid tax, the Canada Revenue Agency:

• A)allows only the FIFO method to be used.
• B)allows only average cost to be used.
• C)places restrictions on the company's ability to change methods.
• D)accepts any method that is used for accounting purposes.