Which of the Following Statements About LIFO Is False

Multiple Choice

Which of the following statements about LIFO is false?

A) It results in a higher cost of goods sold during periods of rising prices.
B) If inventory declines,it will result in a matching of current revenues and old costs
C) The cost of ending inventory will probably be very different from current replacement cost.
D) Firms that use LIFO run the risk of inventory obsolescence because they are keeping old goods on hand.