LIFO can produce absurd inventory valuations. Why?

A.

LIFO inventory valuations can be absurd because inventory valuation is based on older and older costs as the years pass. When a company has been in business for 100 years, its original acquisition cost of an item is not informative.

B.

LIFO inventory valuations can be absurd because inventory valuation is based on recent costs. It does not take into account a company that has been in business for 100 years and its original acquisition cost of an item.

C.

LIFO inventory valuations can produce absurd inventory valuations when prices during a given period are fluctuating constantly.

D.

LIFO inventory valuations are never absurd but most accurate because inventory valuation is based on older and older costs as the years pass. When a company has been in business for 100 years, its original acquisition cost of an item is the most informative measure.