Multiple Choice
Which of the following statements about the computation of cost of goods sold is true?
A) Manufacturing and retail businesses must use the specific identification method for tax purposes.
B) Manufacturing and retail businesses must use the FIFO costing convention for tax purposes.
C) Manufacturing and retail businesses must use the LIFO costing convention for tax purposes.
D) Manufacturing and retail businesses that use the LIFO costing convention for tax purposes must also use LIFO for book purposes.
Correct Answer:
Verified
Correct Answer:
Verified
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