The dollar-value inventory method is an improvement over the traditional LIFO pool approach because
A) the mathematical computations are greatly simplified.
B) it is easier to apply where few inventory items are employed and little change in product mix is anticipated.
C) increases and decreases in a pool are determined and measured in terms of total dollar value rather than the physical quantity of the goods in the inventory pool.
D) dissimilar items of inventory can be grouped to form pools under the dollar-value LIFO method.

Question

Quizplus · Accepted Answer

The dollar-value inventory method measures changes in inventory pools in terms of dollar value, not physical quantity, allowing for more flexibility and accuracy in accounting for inventory changes.

The Dollar-Value Inventory Method Is an Improvement Over the Traditional