Which of the following inventory valuation methods minimizes income tax expense during a period of rising inventory costs?

Name: Which of the following inventory valuation methods minimizes income tax expense during a period of rising inventory costs?
Brand: Quizplus
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Question

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Last-in, first-out (LIFO) assumes that the last inventory items purchased are the first sold, resulting in higher cost of goods sold and lower taxable income during periods of rising inventory costs. This minimizes the income tax expense.

Which of the Following Inventory Valuation Methods Minimizes Income Tax