Just-in-time inventory systems cannot be used in conjunction with LIFO.

Question

Quizplus · Accepted Answer

Just-in-time inventory systems can be used with any inventory costing method, including LIFO. LIFO stands for "last-in, first-out," which means the most recently acquired inventory items are assumed to be the first ones sold. While using LIFO may complicate accounting and tax calculations for a company implementing just-in-time inventory management, it is not incompatible with this system.

Just-In-Time Inventory Systems Cannot Be Used in Conjunction with LIFO