In a period of rising prices, the use of which of the following cost flow methods would result in the lowest tax liability?

Name: In a period of rising prices, the use of which of the following cost flow methods would result in the lowest tax liability?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Under the LIFO method, the most recent purchases, which were the most expensive, would be considered to be the goods sold. This would result in higher cost of goods sold, thus lower gross margins which in turn would result in lower income taxes.

In a Period of Rising Prices, the Use of Which