问题如下：
4. The best answer to Borghi’s Question 1 is:
选项：
A.Crux’s.
B.Rolby’s.
C.Mikko’s.
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.
Q1问的是哪个公司的gross margin更符合现在的市场情况。
因为gross margin=gross profit/revenue，其中gross profit=revenue-COGS,问哪个gross margin更符合现在的市场条件，即问哪个COGS更符合现在的市场。
M和C公司用的LIFO，R公司用的是FIFO。
在LIFO下，后进来的先出去，所以COGS反应的是最近的市场价格，所以选M公司。
Crux and Mikko report under US GAAP and Rolby reports under IFRS.就能得出结论M和C公司用的LIFO，R公司用的是FIFO？也可以都用FIFO吧？
还有M和C公司都用的LIFO，为何M best reflect current costs of the industry
