Explain with the help of a suitable example how current costs can be shown on both the income statement and the balance sheet under the LIFO inventory method. “Management makes policy decision, at one...

Explain with the help of a suitable example how current costs can be shown on both the income statement and the balance sheet under the LIFO inventory method.

“Management makes policy decision, at one time or another, regarding methods of inventory valuation. These decisions are important because they directly affect the way income will be computed.” Discuss.