Management's Choice to Use LIFO or FIFO Can Make a Financial

Multiple Choice

Management's choice to use LIFO or FIFO can make a financial analyst's efforts to compare companies difficult. The financial analyst's job is made easier because of the

A) requirement that the financial statements and tax return must use the same inventory valuation methodology
B) fact that most companies in an industry use the specific identification method
C) use of the weighted average method
D) disclosure of the LIFO reserve