Inventory turnover under LIFO is greater than inventory turnover under FIFO when unit costs are increasing.

Name: Inventory turnover under LIFO is greater than inventory turnover under FIFO when unit costs are increasing.
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Question

Quizplus · Accepted Answer

Under LIFO, the most recent and therefore most expensive units are assumed to be sold first, resulting in lower ending inventory balances and a higher cost of goods sold. This leads to a higher inventory turnover ratio compared to FIFO when unit costs are increasing.

Inventory Turnover Under LIFO Is Greater Than Inventory Turnover Under