问题
单项选择题
Under last in first out (LIFO) accounting during periods of inflation, when a firm sells a greater quantity of its inventory than it produces or acquires, the result is:（）
A. an understatement of the cost of goods sold.
B. lower earnings.
C. an increase in the leverage multiplier.
答案
参考答案：A
解析：
This is a LIFO liquidation which refers to a declining inventory balance (the units available for sale are declining). In this case the prices for goods that are being sold are no longer recent prices and can be many years out of date. This would make COGS appear to be very low and gross and net profits to be artificially high.