Using the dollar-value LIFO retail method for inventory,:
A)Is the same as dollar-value LIFO, except that the inventory is measured at retail, rather than at cost.
B)Combines retail LIFO accounting with dollar-value LIFO accounting
C)Allows companies to report inventory on the balance sheet at retail prices.
D)All of these are correct.

Question

Quizplus · Accepted Answer

The dollar-value LIFO retail method combines the retail LIFO accounting with dollar-value LIFO accounting. This method considers changes in both price and quantity of goods sold, and therefore, provides better matching of costs with revenues. It is commonly used in the retail industry, where prices are constantly changing, and LIFO is used to match the most recent costs with revenues. However, it does not allow companies to report inventory on the balance sheet at retail prices.

Using the Dollar-Value LIFO Retail Method for Inventory