LIFO liquidation occurs when:
A)a firm changes from LIFO to another inventory method.
B)a firm experiences an increase in cost of raw materials.
C)the LIFO reserves decline in value.
D)the quantity of goods sold is greater than the quantity produced.

Question

Quizplus · Accepted Answer

LIFO liquidation occurs when the quantity of goods sold is greater than the quantity produced. This can lead to a decline in the LIFO reserve and can result in higher taxable income and lower net income for the firm.

LIFO Liquidation Occurs When