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yulyashka [42]
3 years ago
12

Companies can and often do use different costing methods for financial reporting and tax reporting. An exception to this is the:

Business
1 answer:
nignag [31]3 years ago
7 0

Answer:

LIFO conformity rule.

Explanation:

LIFO refers to the Last in first out method. In this inventory system, the firm sells last units at first stage and then sells according to that

According to the given situation,  the LIFO conformity rule requires that the taxpayer follow the same inventory cost flow as used for tax reporting purposes in the financial statement.

Therefore the correct answer is LIFO conformity rule.

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Answer:

B

Explanation:

One of the problems in economics is the allocation of goods in the presence of externalities. When externalities are present allocation of goods in private market won't be efficient because private parties won't internalize them and would arrive to an inefficient outcome. For many years this was an argument in favor of government intervention.

However, Ronald Coase showed that assigning property rights of the externality to one of the private parties (no matter which one) would result in an efficient outcome. This is because  the parties with the property right would then internalize the cost. Then in the bargaining process private parties would reach an efficient outcome without the intervention of the government.

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Division A reported income from operations of $975,000 and total service department charges of $675,000. As a result, a.consolid
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