A company can change from LIFO to FIFO without notifying the Internal Revenue Service.

Name: A company can change from LIFO to FIFO without notifying the Internal Revenue Service.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A company must notify the Internal Revenue Service (IRS) if it decides to change its inventory accounting method from LIFO (Last In, First Out) to FIFO (First In, First Out) because such a change can significantly affect the company's reported income and taxes.

A Company Can Change from LIFO to FIFO Without Notifying