When inventory costs are falling,the LIFO costing method will generally result in:

Question

Quizplus · Accepted Answer

When inventory costs are falling, the LIFO costing method will generally result in a higher gross profit than under FIFO because the cost of goods sold will be lower under LIFO. This is because LIFO assumes that the most recently purchased inventory is the first to be sold, so when costs are falling, the cost of goods sold will be based on the lower, more recent costs.

When Inventory Costs Are Falling,the LIFO Costing Method Will Generally