When costs to purchase inventory are decreasing,using LIFO leads to reporting ________ cost of goods sold and ________ net income than FIFO.
A)lower;higher
B)higher;higher
C)lower;lower
D)higher,lower

Question

Quizplus · Accepted Answer

When costs are decreasing,LIFO produces a higher ending inventory value and a lower cost of goods sold (resulting in a higher gross profit and higher income taxes).

When Costs to Purchase Inventory Are Decreasing,using LIFO Leads to Reporting