LIFO liquidations can occur frequently when using a specific-goods approach.

Name: LIFO liquidations can occur frequently when using a specific-goods approach.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A specific-goods approach involves identifying and tracking specific units of inventory, and when the most recently purchased units are sold first (LIFO), older units may remain unsold and lead to LIFO liquidations. This can occur frequently, especially if there are large fluctuations in demand or purchasing patterns.

LIFO Liquidations Can Occur Frequently When Using a Specific-Goods Approach