During periods of increasing unit costs,the LIFO inventory method results in lower income taxes.

Name: During periods of increasing unit costs,the LIFO inventory method results in lower income taxes.
Brand: Quizplus
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Quizplus · Accepted Answer

LIFO (Last-In, First-Out) assumes that the most recently acquired inventory is sold first, resulting in a higher Cost of Goods Sold (COGS) and a lower ending inventory balance. When unit costs are increasing, this method results in a higher COGS and therefore lower taxable income.

During Periods of Increasing Unit Costs,the LIFO Inventory Method Results