A conservative company experiencing rapid price increases for its products would use LIFO to try to:
A) Allow the inventory that was just purchased at a higher price to be moved to cost of goods sold, showing a lower net income.
B) Allow the inventory that was just purchased at a higher price to remain in ending inventory values and move older inventory to cost of goods sold, showing a higher net income.
C) Allow the inventory that was just purchased at a lower price to remain in ending inventory values and move older inventory to cost of goods sold, showing a lower net income.
D) Allow the inventory that was just purchased at a lower price to be moved to cost of goods sold, showing a higher net income.

Question

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The Answer of A conservative company experiencing rapid price increases for its products would use LIFO to try to:
A) Allow the inventory that was just purchased at a higher price to be moved to cost of goods sold, showing a lower net income.
B) Allow the inventory that was just purchased at a higher price to remain in ending inventory values and move older inventory to cost of goods sold, showing a higher net income.
C) Allow the inventory that was just purchased at a lower price to remain in ending inventory values and move older inventory to cost of goods sold, showing a lower net income.
D) Allow the inventory that was just purchased at a lower price to be moved to cost of goods sold, showing a higher net income.

A Conservative Company Experiencing Rapid Price Increases for Its Products