During a period of rising prices,FIFO (first in,first out)inventory valuation method will result in ________ net income figures than would LIFO (last in,first out).

Question

Quizplus · Accepted Answer

In a period of rising prices, the FIFO method assumes that the earliest units purchased are the first ones sold, resulting in lower cost of goods sold and higher net income figures compared to the LIFO method which assumes that the latest units purchased are the first ones sold, resulting in higher cost of goods sold and lower net income figures.

During a Period of Rising Prices,FIFO (First In,first Out)inventory Valuation