Question Details

LIFO is inappropriate where unit costs tend to decrease as production increases 



TRUE OR FALSE:
1.		The dollar-value LIFO method measures any increases and decreases in a pool in terms of total dollar value and physical quantity of the goods. 

	2.	A disadvantage of LIFO is that it does not match more recent costs against current revenues as well as FIFO.

	3.	The LIFO conformity rule requires that if a company uses LIFO for tax purposes, it must also use LIFO for financial accounting purposes. 

	4.	Use of LIFO provides a tax benefit in an industry where unit costs tend to decrease as production increases.  

	5.	LIFO is inappropriate where unit costs tend to decrease as production increases .




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