The LIFO Conformity Rule States That If LIFO Is Used

question 21

Multiple Choice

The LIFO conformity rule states that if LIFO is used for:

• A)One class of inventory,it must be used for all classes of inventory.
• B)Tax purposes,it must be used for financial reporting.
• C)One company in an affiliated group,it must be used by all companies in an affiliated group.
• D)Domestic companies,it must be used by foreign partners.

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Definitions:

Social Loafing

is the phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Compliance

The act of conforming to a request, rule, or expectation.

Social Facilitation

The tendency for people to perform differently, usually better, when in the presence of others compared to when alone.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or standards.