In a time of rising prices,the main reason a company would choose to use LIFO is to save on income taxes.

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LIFO (Last-In, First-Out) accounting assumes that the last items purchased or produced are the first ones sold. In a time of rising prices, this means that the cost of goods sold will be based on the higher-priced inventory items, which reduces the reported profit and, therefore, the tax liability. This makes LIFO an attractive accounting method for companies looking to save on income taxes.

In a Time of Rising Prices,the Main Reason a Company