__________ Is a False Statement

question 85

Multiple Choice

__________ is a false statement.

• A)During periods of inflation, LIFO makes the balance sheet less representative of the actual inventory values than if FIFO were used
• B)During periods of inflation, FIFO makes the balance sheet less representative of actual inventory values than if LIFO were used
• C)During periods of inflation, LIFO overstates earnings relative to FIFO
• D)B and C
• E)none of the above.

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Definitions:

Actual Overhead

The real costs incurred from indirect materials, labor, and expenses for manufacturing or service provision, as opposed to budgeted overhead.