Assuming Inflation,which of the Following Statements Incorrectly Describes an Attribute

Multiple Choice

Assuming inflation,which of the following statements incorrectly describes an attribute of,or the relationship among,inventory valuation methods?

A) Specific identification is used primarily when ending inventory consists of a relatively few but very expensive and distinctive items.
B) Given inflation and in order to minimize taxes,most firms have tended to switch to LIFO if they had been using FIFO.
C) LIFO tends to provide ending inventory valuations that closely approximate the actual market value of the inventory at the balance sheet date.
D) LIFO tends to report current acquisition costs of inventory through cost of goods sold.
E) Weighted average provides less extreme balance sheet and income statement results than either FIFO or LIFO.