Which of the Following Is an Advantage for U

Multiple Choice

Which of the following is an advantage for U.S. companies with international operations to use LIFO for U.S. purposes, as opposed to using FIFO for foreign subsidiaries?

A) LIFO creates paper profits.
B) LIFO generally approximates the physical flow of items.
C) Under LIFO, inventory is less vulnerable to price declines.
D) LIFO eliminates balance sheet distortion.