Under the LIFO cost flow assumption during a period of inflation,which of the following is false?
A)Cost of goods sold will be lower than under FIFO.
B)Gross margin will be lower than under FIFO.
C)Income tax expense will be lower than under FIFO.
D)Ending inventory will be lower than under FIFO.

Question

Quizplus · Accepted Answer

Cost of goods sold comes from recent inventory purchases and is therefore higher.

Under the LIFO Cost Flow Assumption During a Period of Inflation,which