Estimates of price-level changes for specific inventories are required for which of the following inventory methods?
A) Weighted-average cost
B) FIFO
C) LIFO
D) Dollar-value LIFO

Question

Quizplus · Accepted Answer

Dollar-value LIFO requires estimates of price-level changes to adjust inventory costs for inflation or deflation, as it uses a cost index to convert current inventory costs to base-year costs.

Estimates of Price-Level Changes for Specific Inventories Are Required for Which