Even though the LIFO cost flow assumption will reduce taxable income and the related cash outflow for income taxes, there are certain difficulties encountered with its implementation.Thus, dollar-value LIFO is often used.
Required:
Discuss three different ways that the dollar-value LIFO method overcomes some of the difficulties in the application of the LIFO approach.

Question

Quizplus · Accepted Answer

The Answer of Even though the LIFO cost flow assumption will reduce taxable income and the related cash outflow for income taxes, there are certain difficulties encountered with its implementation.Thus, dollar-value LIFO is often used.
Required:
Discuss three different ways that the dollar-value LIFO method overcomes some of the difficulties in the application of the LIFO approach.

Even Though the LIFO Cost Flow Assumption Will Reduce Taxable