In a period of rising costs,the first-in,first-out (FIFO)method results in a lower cost of goods sold and a higher gross profit than the last-in,first-out (LIFO)method.

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This is because under FIFO, the oldest inventory (which was purchased at a lower cost) is sold first, which results in a lower cost of goods sold and a higher gross profit. Under LIFO, the most recently purchased inventory (which was purchased at a higher cost due to rising costs) is sold first, which results in a higher cost of goods sold and a lower gross profit.

In a Period of Rising Costs,the First-In,first-Out (FIFO)method Results in a Lower