In the period of rising costs and prices, a reduction in inventory quantities when FIFO is used is known as FIFO liquidation, and it yields an increase in gross profit and income.

Question

Quizplus · Accepted Answer

In the period of rising costs and prices, a reduction in inventory quantities when LIFO (not FIFO) is used, known as LIFO (not FIFO) liquidation, yields an increase in gross profit and income.

In the Period of Rising Costs and Prices, a Reduction