GAAP for Inventory Costs ________

question 108

Multiple Choice

GAAP for inventory costs ________.

• A)allow two cost flow assumptions: FIFO and LIFO
• B)require companies to report the same net income regardless of which inventory cost flow assumption is used.This is called the income conformity rule
• C)allow for only one inventory cost flow assumption to enhance comparability
• D)allow for more than two inventory cost flow assumptions

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