For interim reporting, which of the following statements is true?
A)Under a standard cost system, unplanned or unanticipated variances should be deferred at interim reporting dates.
B)Under the LIFO method, recognition of layer liquidations, thought to be temporary, are postponed by using replacement cost in the calculation of interim cost of goods sold.
C)Under the lower of cost or market determination of ending inventory, a gain may not be recognized in an interim period.
D)All of these statements are true.

Question

For interim reporting, which of the following statements is true?
A)​Under a standard cost system, unplanned or unanticipated variances should be deferred at interim reporting dates.
B)​Under the LIFO method, recognition of layer liquidations, thought to be temporary, are postponed by using replacement cost in the calculation of interim cost of goods sold.
C)​Under the lower of cost or market determination of ending inventory, a gain may not be recognized in an interim period.
D)​All of these statements are true.

Quizplus · Accepted Answer

Under the LIFO method, temporary layer liquidations can be postponed by using replacement cost for interim reporting, making statement B true.

For Interim Reporting, Which of the Following Statements Is True