Which of the following statements about the computation of cost of goods sold is true?

Multiple Choice

• Manufacturing and retail businesses must use the specific identification method for tax purposes.

• Manufacturing and retail businesses must use the LIFO costing convention for tax purposes.

• Manufacturing and retail businesses that use the LIFO costing convention for tax purposes must also use LIFO for book purposes.

• Manufacturing and retail businesses must use the FIFO costing convention for tax purposes.