Dollar-value LIFO:
A) Starts with ending inventory measured at current costs and re-creates LIFO layers for measuring inventory costs.
B) Increases the recordkeeping costs of LIFO.
C) Only is allowed for internal reporting purposes.
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Dollar-value LIFO starts with ending inventory measured at current costs and re-creates LIFO layers for measuring inventory costs. This method reduces the record-keeping costs associated with LIFO as it reduces the number of inventory pools needed. It is also allowed for both internal and external reporting purposes.

Dollar-Value LIFO