The change that will increase reported profit (assuming inflation)is:

Question

Quizplus · Accepted Answer

Switching from LIFO (Last-in-First-Out) to FIFO (First-in-First-Out) method of inventory valuation assumes that the older lower-priced inventory items will be sold first, resulting in a lower cost of goods sold and higher reported profits. This change is more effective in an inflationary environment where prices are increasing.

Option B and C may also increase reported profits, but it depends on the specific circumstances and should be evaluated on a case-by-case basis.

The Change That Will Increase Reported Profit (Assuming Inflation)is