FIFO method is an income decreasing inventory cost flow method in periods of rising prices.

Name: FIFO method is an income decreasing inventory cost flow method in periods of rising prices.
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Question

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FIFO (First-In, First-Out) method typically results in higher reported income in periods of rising prices because the older, lower-cost items are recorded as cost of goods sold first, leaving the newer, higher-cost items in inventory.

FIFO Method Is an Income Decreasing Inventory Cost Flow Method