If all things are equal,except one company uses LIFO during inflation and the other uses FIFO,then:
A)The LIFO company will have a higher inventory turnover.
B)The FIFO company will have a higher inventory turnover.
C)The two companies will have the same inventory turnover.
D)Inventory valuation methods do not effect inventory turnover calculations.

Question

Quizplus · Accepted Answer

LIFO (Last-In, First-Out) results in higher cost of goods sold during inflation, leading to a lower ending inventory value, which increases inventory turnover (COGS/Average Inventory).

If All Things Are Equal,except One Company Uses LIFO During