Which method might allow a company to make significant inventory purchases at year end for the purpose of manipulating income?

Question

Quizplus · Accepted Answer

LIFO (Last-In, First-Out) accounting allows a company to report lower income by assuming that the most recently purchased inventory items are sold first. By purchasing a large amount of inventory towards the end of the year, the company can decrease their taxable income for that year.

Which Method Might Allow a Company to Make Significant Inventory