LIFO is preferred when costs are rising because managers will benefit from larger bonuses and better performance reviews.

Name: LIFO is preferred when costs are rising because managers will benefit from larger bonuses and better performance reviews.
Brand: Quizplus
Rating: 4.8 (30 reviews)

Question

Quizplus · Accepted Answer

LIFO (Last-In, First-Out) results in higher cost of goods sold and lower taxable income when costs are rising, which may not necessarily lead to larger bonuses or better performance reviews, as it reduces reported profits.

LIFO Is Preferred When Costs Are Rising Because Managers Will