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$10$ The LIFO Conformity Rule requires that if LIFO is used for:

a$.$ One class of inventory, it must be used for all classes of inventory.

b$.$ Tax purposes, it must be used for financial reporting.

c$.$ One company in an affiliated group, it must be used by all companies in an affiliated group.

d$.$ Domestic companies, it must be used by foreign partners.

$11$ If the gross profit method is used to estimate ending inventory, it is not necessary to know:

a$.$ Beginning inventory.

b$.$ Net purchases.

c$.$ Cost of goods sold.

d$.$ Net sales.

$12$ Which change would not require the company to account for the change retrospectively?

a$.$ From average cot to FIFO.

b$.$ From FIFO to LIFO.

c$.$ From LIFO to FIFO.

d$.$ From LIFO to average cost.

$13$ The denominator includes

when computing the cost$-$to$-$retail percentage for

the average cost retail method.

a$.$ Net markups and net markdowns.

b$.$ Neither net markups nor net markdowns.

c$.$ Net markups, but not net markdowns.

d$.$ Net markdowns, but not net markups.

$14$ When there is a change from

$,$ retrospective treatment of prior years'

financial statements is required.

a$.$ Average cost to FIFO.

b$.$ FIFO to average cost.

c$.$ LIFO to average cost.

d$.$ All of these answer choices are correct.

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