Which of the following statements is true about specific-goods pooled LIFO approach?
A) It determines and measures any increases and decreases in a pool in terms of total dollar value
B) Most companies using a LIFO system prefer specific-goods pooled LIFO approach over dollar-value LIFO
C) It usually results in large LIFO liquidation
D) The reduction of one quantity in the pool may be offset by an increase in another

Question

Quizplus · Accepted Answer

The specific-goods pooled LIFO approach allows for the reduction of one quantity in the pool to be offset by an increase in another, which helps in minimizing the effects of LIFO liquidation.

Which of the Following Statements Is True About Specific-Goods Pooled