Question

When prices change during a period, a company can combine the principles of the retail LIFO method with the dollar-value LIFO method to eliminate the effects of this price change. This combination is called:______

Answer 1

Answer:

Dollar value LIFO retail method

Explanation:

Dollar-Value LIFO aim to reduces the effect of the liquidation, allows companies to use FIFO internally and also reduces clerical costs.

Dollar value LIFO retail method are retailers way of getting or achieving the LIFO cost flow without monitoring individual units and this may lead to low liquidation of LIFO cost layers that could occur during tracking.