physical flow of inventory

Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle
Section: Chapter Questions
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19. Which of the following is not considered a disadvantage of LIFO?
Select one:
A. LIFO matches more recent costs against revenues providing better matching.

B. LIFO may have a distorting effect on a company's balance sheet.

C. LIFO does not usually approximate physical flow of inventory.
D. LIFO can lead to poor buying habits to manipulate expenses.

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