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答案和详解如下:

38Correct answer is C

"Analysis of Inventories," Gerald I. White, Ashwinpaul C. Sondhi, and Dov Fried

2008 Modular Level I, Vol. 3, pp. 327-331

Study Session 9-35-e

indicate the reasons that a LIFO reserve might decline during a given period and evaluate the implications of such decline for financial analysis

A liquidation of LIFO inventory produces unsustainable profit margins because old costs are being matched with current revenues.

 

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