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