Why Is the LIFO Cost Flow Assumption an Acceptable Valuation

question 18

Essay

Why is the LIFO cost flow assumption an acceptable valuation method for merchandise inventory when it rarely matches the physical movement of the product?

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Definitions:

Computer Franchise

A franchise operation that provides computer-related services or products, often including sales, repair, and maintenance.

IRS Form 1040 C

is a tax form for aliens leaving the United States to report income received or expected for the entire year.

Sole Proprietorship

A form of business organization where a single individual owns and operates the business, bearing full responsibility for its debts and liabilities.

Capital Intensive

Describing a business that requires significant investment in capital assets like machinery and equipment to produce goods or services.