A Disadvantage of the LIFO Method Is That

question 51

Multiple Choice

A disadvantage of the LIFO method is that:

• A) it doesn't match physical flow of goods.
• B) ending inventory is valued at very old costs.
• C) it matches current selling prices and current costs.
• D) Both A and B are correct.

---

Definitions:

Existing Brands

Brands that have been established in the market over time and have developed awareness, loyalty, and identity among consumers.

Brand Dilution

Occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.

Pepsi

A global brand of carbonated soft drinks produced and manufactured by PepsiCo.

Product Label

A piece of information on a product's package that provides details about the product, including ingredients, manufacturer, usage instructions, and safety warnings.