Which of the following is true regarding the use of LIFO for inventory valuation?
A)If LIFO is used for external financial reporting, then it must also be used for internal reports.
B)For purposes of external financial reporting, LIFO may not be used with the lower of cost or market approach.
C)If LIFO is used for external financial reporting, then it cannot be used for tax purposes.
D)None of these.

Question

Quizplus · Accepted Answer

LIFO can be used for both external financial reporting and tax purposes, and it can be used with the lower of cost or market approach. Additionally, companies can use different inventory valuation methods for internal and external reporting.

Which of the Following Is True Regarding the Use of LIFO