Which of the Following Statements Is Correct with Respect to Positive

Multiple Choice

Which of the following statements is correct with respect to positive accounting theory?

A) Managers of firms with bonus-based contracts prefer LIFO method of valuation basis, if permitted.
B) Managers of firms with bonus-based contracts prefer FIFO method of valuation basis.
C) Managers prefer the FIFO method of valuation basis.
D) Managers with debt covenants prefer LIFO method, if permitted.