During inflation, LIFO produces the highest possible income for a company.

Name: During inflation, LIFO produces the highest possible income for a company.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

During inflation, LIFO (Last In, First Out) results in higher cost of goods sold because the most recently acquired (and presumably more expensive) inventory is sold first, leading to lower reported net income compared to other inventory accounting methods.

During Inflation, LIFO Produces the Highest Possible Income for a Company