The LIFO method of inventory valuation bases the cost of goods sold on the cost to the firm of the:

Name: The LIFO method of inventory valuation bases the cost of goods sold on the cost to the firm of the:
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LIFO (last-in, first-out) assumes that the most recent merchandise purchased by the firm is the first to be sold, and therefore the cost of goods sold is based on that cost. This can result in a higher cost of goods sold and lower net income compared to other inventory valuation methods.

The LIFO Method of Inventory Valuation Bases the Cost of Goods