During a period of rising prices,a company's cost of goods sold would be higher using the LIFO cost flow method than with FIFO.

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LIFO (last-in, first-out) cost flow method assumes that the items purchased last are the ones sold first. During a period of rising prices, the cost of the most recently purchased goods is higher than those purchased earlier. Therefore, using LIFO will result in higher cost of goods sold and lower gross profit compared to FIFO (first-in, first-out) method where the cost of the oldest items is used to calculate cost of goods sold.

During a Period of Rising Prices,a Company's Cost of Goods