If a company switches from FIFO to LIFO during a period of rising prices, inventory turnover will probably increase.

Name: If a company switches from FIFO to LIFO during a period of rising prices, inventory turnover will probably increase.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

Switching from FIFO to LIFO in a period of rising prices typically results in higher cost of goods sold and lower ending inventory values, which can lead to an increase in inventory turnover ratio.

If a Company Switches from FIFO to LIFO During a Period