During periods of increasing costs, the use of the FIFO method of costing inventory will result in a greater amount of net income than would result from the use of the LIFO cost method.

Question

Quizplus · Accepted Answer

During periods of increasing costs, using the FIFO method results in higher costs of goods sold and lower ending inventory values compared to using the LIFO method. This leads to a higher net income for FIFO.

During Periods of Increasing Costs, the Use of the FIFO