Which of the following statements about inventory costing methods is correct?
A. International Financial Reporting Standards (IFRS) allow the use of LIFO but not FIFO.
B. A change in inventory method is allowed only if it improves the accuracy of the company's financial results.
C. In the U.S., if a company uses LIFO on the income tax return, it may use a different method for financial reporting.
D. During a period of rising prices, LIFO results in a higher income tax expense than does FIFO.
Answer: B
You might also like to view...
Which of the following equations is true of aggregate demand?
A. Aggregate demand = consumption + investment - government spending - net exports B. Aggregate demand = consumption - investment - government spending - net exports C. Aggregate demand = consumption + investment + government spending + net exports D. Aggregate demand = consumption - investment + government spending + net exports
The issue price of a bond is always present valued using the market rate of interest
a. True b. False Indicate whether the statement is true or false
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs is known as market diversification
Indicate whether the statement is true or false
Which of the following statements is false? The cost of rework on defective units, if
a. abnormal, should be assigned to a loss account. b. normal and if actual costs are used, should be assigned to material, labor and overhead costs of the good production. c. normal and if standard costs are used, should be considered when developing the overhead application rate. d. abnormal, should be prorated among Work In Process, Finished Goods, and Cost of Goods Sold.