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The Primary Reason for the Popularity of the LIFO Flow

Question 4

Multiple Choice

The primary reason for the popularity of the LIFO flow assumption is that this method:


A) Is most appropriate when each item in inventory is unique.
B) Tends to minimize taxable income.
C) Causes inventory to be reported at or near its current replacement cost.
D) Reduces the amount of money "tied up" in inventory.

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