In a period of rising inventory costs,the LIFO method would result in the highest cash flow from operations.

Question

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During periods of rising inventory costs, the LIFO (Last In, First Out) method results in higher cost of goods sold (COGS) figures compared to other inventory accounting methods. This higher COGS under LIFO leads to lower taxable income and, consequently, lower tax payments. The reduction in taxes increases the net cash flow from operating activities, making cash flow higher under LIFO in such scenarios.

In a Period of Rising Inventory Costs,the LIFO Method Would