During a period of deflation, the LIFO method provides a lower ending inventory amount than does FIFO.

Name: During a period of deflation, the LIFO method provides a lower ending inventory amount than does FIFO.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

During deflation, the LIFO (Last In, First Out) method would result in a higher ending inventory amount than FIFO (First In, First Out) because the older, cheaper goods remain in inventory under LIFO, while under FIFO, the cheaper goods are sold first.

During a Period of Deflation, the LIFO Method Provides a Lower