LIFO layers are more likely to be liquidated when inventory records are kept on
A)an inventory group basis.
B)a total inventory basis.
C)an item-by-item basis.
D)a specific identification basis.

Question

Quizplus · Accepted Answer

When inventory records are kept on an item-by-item basis, it is easier to identify and liquidate specific LIFO layers, as each item's cost is tracked individually.

LIFO Layers Are More Likely to Be Liquidated When Inventory