ECONOMICS

Detailed explanation-1: -Last-In First-Out (LIFO) Method: The issues are priced out at the most recent batch received and continue to be charged until a new batch received is arrived into stock. It is a method of pricing the issue of material using the purchase price of the latest unit in the stock.

Detailed explanation-2: -Since LIFO uses the most recently acquired inventory to value COGS, the leftover inventory might be extremely old or obsolete. As a result, LIFO doesn’t provide an accurate or up-to-date value of inventory because the valuation is much lower than inventory items at today’s prices.

Detailed explanation-3: -However, this accounting method carries a distinct disadvantage. When a company follows the LIFO method, the ending inventory is valued at old prices. These don’t reflect the current situation. Consequently, the financial statements could present a distorted picture of the value of a company’s inventory.

Detailed explanation-4: -UnderLIFO since the most recently purchased are assumed to be first units sold, theinventory comprises of oldest units and oldest cost. Hence option (e) is false. All otherstatements are true.]