Management's Choice to Use LIFO or FIFO Can Make a Financial

question 87

Multiple Choice

Management's choice to use LIFO or FIFO can make a financial analyst's efforts to compare companies difficult. The financial analyst's job is made easier because of the

• A) requirement that the financial statements and tax return must use the same inventory valuation methodology
• B) fact that most companies in an industry use the specific identification method
• C) use of the weighted average method
• D) disclosure of the LIFO reserve

---

Definitions:

Digital Form

Information or content that is stored and used in a digital, electronic format, rather than in physical form.

Chat Messaging

The use of instant messaging platforms for real-time text-based communication between individuals or groups, increasingly used in professional contexts.

Just Cause

A legal term denoting a legitimate or legally sound reason, often used in the context of disciplinary actions or employment termination.

The Labour Board

A governmental agency responsible for overseeing labor relations, including the administration of labor laws and the resolution of disputes between employers and employees.