In periods of inflation,FIFO leads to ________ gross profit than LIFO.
A) lower
B) the same
C) higher
D) not enough information

Name: In periods of inflation,FIFO leads to ________ gross profit than LIFO. A) lower B) the same C) higher D) not enough information
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Question

Quizplus · Accepted Answer

During periods of inflation, the cost of goods sold is higher and the older, lower-cost inventory is sold first with FIFO. Thus, the cost of goods sold is lower with LIFO, leading to a higher gross profit with FIFO.

In Periods of Inflation,FIFO Leads to ________ Gross Profit Than