The use of LIFO in accounting for a firm's inventory:
A)Usually matches the physical flow of goods through the business.
B)Is usually used for internal management purposes.
C)Usually provides a better match of expenses with revenues.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

LIFO (Last-In, First-Out) often provides a better match of expenses with revenues during periods of inflation, as it matches recent higher costs with current revenues.

The Use of LIFO in Accounting for a Firm's Inventory