The LIFO Conformity Rule Requires a Company That Uses

Multiple Choice

The LIFO conformity rule requires a company that uses:

A) the LIFO assumption for computing cost of goods sold on its tax return to also use the LIFO assumption in preparing its financial statements.
B) any inventory cost assumption to use the LIFO cost assumption for tax purposes.
C) the LIFO assumption for computing cost of goods sold on its financial statements to also use LIFO on its tax return.
D) the LIFO assumption to avoid paying taxes on inventory profits.