The use of the LIFO method of inventory valuation

Name: The use of the LIFO method of inventory valuation
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The LIFO method of inventory valuation assigns the cost of the most recent purchases to the cost of goods sold, which results in the lowest cost of goods sold and therefore the lowest reported net income in a time of rising prices. This is because the older, cheaper inventory is deemed to have been sold first, leaving the more expensive inventory in the ending inventory.

The Use of the LIFO Method of Inventory Valuation