Which of the following statements is not true as it relates to the dollar-value LIFO inven-tory method?
A) It is easier to erode LIFO layers using dollar-value LIFO techniques than it is with specific goods pooled LIFO.
B) Under the dollar-value LIFO method, it is possible to have the entire inventory in only one pool.
C) Several pools are commonly employed in using the dollar-value LIFO inventory method.
D) Under dollar-value LIFO, increases and decreases in a pool are determined and measured in terms of total dollar value, not physical quantity.

Question

Quizplus · Accepted Answer

Dollar-value LIFO makes it more difficult to erode LIFO layers because it measures inventory in dollar terms rather than in physical units, which can mitigate the effects of liquidating older, lower-cost layers.

Which of the Following Statements Is Not True as It