Which of the Following Statements About Inventory Costing Methods Is

question 12

Multiple Choice

Which of the following statements about inventory costing methods is correct?

• A)A change in inventory method is allowed only if it improves the accuracy of the company's financial results.
• B)During a period of rising prices,LIFO results in a higher income tax expense than does FIFO.
• C)International Financial Reporting Standards (IFRS)allow the use of LIFO but not FIFO.
• D)In the U.S. ,if a company uses LIFO on the income tax return,it may use a different method for financial reporting.

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Definitions:

Activity-Based Costing

An accounting methodology that assigns costs to products and services based on the resources they consume, providing more accurate cost information.

Tech Support

A service provided to assist users in solving technical problems with products or services, often involving troubleshooting and guidance on product features.

Time-Driven

A methodology or approach that bases actions, decisions, or processes on specific timing or scheduling requirements.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming for more precise cost allocation.