ACC 304 All Assignments ACC 304 All Assignments | Page 70

16. 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.
17. A disadvantage of LIFO is that it does not match more recent
costs against current revenues as well as FIFO.
18. The LIFO conformity rule requires that if a company uses LIFO
for tax purposes, it must also use LIFO for financial accounting
purposes.
19. Use of LIFO provides a tax benefit in an industry where unit costs
tend to decrease as production increases.
20. LIFO is inappropriate where unit costs tend to decrease as
production increases.
True False Answers—Conceptual