The LIFO effect is ________.
A) the change from the LIFO inventory value to the FIFO inventory value
B) the difference between the ending inventory measured using LIFO and FIFO
C) the change in the LIFO reserve account during the year and the impact on cost of goods sold
D) the difference between the beginning inventory measured using LIFO and FIFO

Question

Quizplus · Accepted Answer

The LIFO effect refers to the change in the LIFO reserve account during the year, which impacts the cost of goods sold.

The LIFO Effect Is ________