老师烦请用中文解读一下这道题？

问题如下：

Question

• Inventories are stated at the lower of cost or market, with cost determined using the last-in, first-out (LIFO) method.

• No LIFO liquidation occurred from 2012 to 2014.

• 

The statement concerning LIFO liquidations most likely means that for the stated period:

In the notes to a company’s financial statements, the note dealing with inventory indicates the following:

选项：

A.units manufactured (or purchased) equaled or exceeded unit sales for each year. B.no inventory write-downs occurred in any of the three years. C.costs and prices must have been rising throughout.

解释：

Solution

A is correct. LIFO liquidation arises when the number of units sold exceeds the number of units purchased or manufactured, so a portion of the older inventory is thus sold off or liquidated. Therefore, the statement means that units manufactured (or purchased) equaled or exceeded unit sales for each year.

B is incorrect. The note states that “Inventories are stated at the lower of cost or market,” so write-downs may have taken place. LIFO liquidations are different than write-downs.

C is incorrect. Costs and prices need not have risen over the stated period, but units sold must not have exceeded units purchased or manufactured.