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Which of the following statements comparing FIFO with LIFO is false? O a. FIFO gives a poor indication of the actual inventory turnover because it
Which of the following statements comparing FIFO with LIFO is false? O a. FIFO gives a poor indication of the actual inventory turnover because it divides a cost of goods sold amount reflecting current costs by an average inventory amount reflecting older costs. Ob. FIFO provides a better indication of the actual inventory turnover because it divides a cost of goods sold amount reflecting relatively current costs by an average inventory amount reflecting relatively recent costs. Oc. LIFO gives a poor indication of the actual turnover of inventory because it divides a cost of goods sold reflecting current costs by an average inventory amount reflecting older costs. O d. LIFO gives a better measure of earnings quality because it reflects current costs in the costs of goods sold.
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