Which of the Following Is a Disadvantage to Business of the LIFO

Multiple Choice

Which of the following is a disadvantage to business of the LIFO method of applying costs to inventory?

A) It is difficult for a computer program to apply the method.
B) It understates the balance sheet value for inventory.
C) Current income is matched with the most recent costs of acquiring goods.
D) If it is allowed for tax purposes, in times of rising prices it results in less tax being paid in the current period.