问题
单项选择题
The best way to compute an inventory turnover ratio is to use:（）
A. LIFO for COGS and FIFO for average inventory.
B. FIFO for both COGS and average inventory.
C. LIFO for both COGS and average inventory.
答案
参考答案：A
解析：
Inventory turnover makes no sense at all for firms using LIFO due to the mismatching of costs ( the numerator is current while the denominator is historical). FIFO based inventory is relatively unaffected by price changes and is a good approximation of actual turnover. In this way, current costs are matched in the numerator and denominator.