For most companies,actual physical flow of their inventory follows LIFO.

Question

Quizplus · Accepted Answer

The statement is contradicting itself. It cannot be both true and false at the same time. However, it is important to note that companies can use either LIFO or FIFO for their inventory accounting purposes, but the actual physical flow of goods may not always follow the same method. It depends on various factors such as warehousing, transportation, and demand for the product.

For Most Companies,actual Physical Flow of Their Inventory Follows LIFO