In the context of dollar-value LIFO, what is a LIFO layer?
A) The difference between the LIFO inventory and the amount used for internal reporting purposes.
B) The LIFO value of the inventory for a given year.
C) The inventory in base year dollars.
D) The LIFO value of an increase in the inventory for a given year.

Question

Quizplus · Accepted Answer

A LIFO layer refers to the increase in inventory, valued at LIFO cost, for a specific year. It represents the additional inventory added during the year, valued using the Last-In, First-Out method.

In the Context of Dollar-Value LIFO, What Is a LIFO