NO.PZ202308140300007604
问题如下：
Q. Which company’s gross profit margin would best reflect current costs of the industry?选项：
A.Crux. B.Rolby. C.Mikko.解释：
C is correct. Mikko’s and Crux’s gross margin ratios would better reflect the current gross margin of the industry than Rolby because both use LIFO. LIFO recognizes as cost of goods sold the cost of the most recently purchased units; therefore, it better reflects replacement cost. However, Mikko’s gross margin ratio best reflects the current gross margin of the industry because Crux’s LIFO reserve is decreasing. This could reflect a LIFO liquidation by Crux which would distort gross profit margin.
However, Mikko’s gross margin ratio best reflects the current gross margin of the industry because Crux’s LIFO reserve is decreasing. This could reflect a LIFO liquidation by Crux which would distort gross profit margin.
这句话怎么理解为什么 LIFO reserve decreasing 就有问题呢？
什么是LIFO reserve？
