During inflationary periods,the use of the LIFO method of costing inventory will result in a lesser amount of net income than would result from the use of the average method.

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During inflation, the LIFO method will result in using the newest and most expensive inventory for cost of goods sold, resulting in a lower ending inventory and a lower net income compared to the average method.

During Inflationary Periods,the Use of the LIFO Method of Costing