Tim's Tams Has Been Using LIFO to Value Its Inventory

question 2

Multiple Choice

Tim's Tams has been using LIFO to value its inventory because it gives a higher cost of goods sold,lower income,and lower taxes.This year Tim's Tams has decided to make a permanent switch to FIFO,even though it will then have to pay more taxes on its higher reported income.This accounting choice would be considered ________.

• A)conservative
• B)fundamental
• C)basic
• D)aggressive