If a Company Is Utilizing LIFO Inventory Costing, What Might

question 39

Multiple Choice

If a company is utilizing LIFO inventory costing, what might be the effect on the calculation of Cost of Goods sold in an interim financial statement?

• A)​cost of goods sold is calculated on a historical cost basis only
• B)​the interim cost of goods sold includes the replacement cost of temporarily liquidated inventory
• C)​cost of goods sold is not adjusted for any changes due to liquidation of LIFO inventory
• D)​any of the effects of liquidation are deferred until year end

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