Asked by Tyson Fisher on May 14, 2024
Verified
The time at which initial adoption of dollar-value LIFO takes place is called the past period.
Dollar-Value LIFO
An inventory valuation method that uses the last-in, first-out (LIFO) cost flow assumption but measures those costs in dollar values, rather than in physical units, to account for inflation or deflation.
Initial Adoption
The first-time application of a new accounting principle, standard, or policy by a company in its financial reporting.
- Understand the permissible flexibility in inventory accounting practices and the deliberate decisions companies make in implementing these methodologies.
Verified Answer
TH
Tatiana HilarioMay 17, 2024
Final Answer :
False
Explanation :
The time at which initial adoption of dollar-value LIFO takes place is called the base year, not the past period. The base year serves as the reference point for comparing changes in inventory costs over time.
Learning Objectives
- Understand the permissible flexibility in inventory accounting practices and the deliberate decisions companies make in implementing these methodologies.
Related questions
The Major Issue in Inventory Accounting Is ...
Inventory Is Reported as a Long-Term Asset on the Balance ...
Under a Periodic Inventory System the Acquisition of Inventory Is ...
Selection of an Inventory Costing Method by Management Does Not ...
Companies Adopt Different Cost Flow Methods for Each of the ...