During a period of inflation,LIFO will produce the lowest net income.

Name: During a period of inflation,LIFO will produce the lowest net income.
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Question

Quizplus · Accepted Answer

LIFO (last-in, first-out) accounting assumes that the most recent inventory purchased or produced is sold first, which means that the cost of goods sold will reflect the current higher prices during inflation. This results in a higher cost of goods sold and lower net income compared to FIFO (first-in, first-out) accounting.

During a Period of Inflation,LIFO Will Produce the Lowest Net