The FIFO System of Inventory Valuation Is Recommended Because __________

Multiple Choice

The FIFO system of inventory valuation is recommended because __________.

A) it reflects truer inventory costs
B) it gives a more accurate cost of goods sold value
C) it makes net income lower than LIFO, which means less cash paid for taxes
D) it reflects truer inventory costs and it gives a more accurate cost of goods sold value
E) All of the answers are correct.