In periods of falling prices,LIFO will result in a higher ending inventory valuation than FIFO.

Question

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LIFO (Last-In, First-Out) assumes that the most recently purchased inventory is sold first. In periods of falling prices, this means that the cost of goods sold will be higher, resulting in a lower net income. As a result, the ending inventory valuation will be higher under LIFO than under FIFO (First-In, First-Out).

In Periods of Falling Prices,LIFO Will Result in a Higher