For the purpose of delaying income taxes,during an inflationary period,which method would be best?

Question

Quizplus · Accepted Answer

LIFO (Last In, First Out) is the best method for delaying income taxes during an inflationary period because it assumes that the most recently acquired items are sold first. This means that the cost of goods sold (COGS) is based on the higher costs of the most recent purchases, leading to a higher COGS and lower reported profits. Lower profits mean lower taxable income, thus delaying income taxes.

For the Purpose of Delaying Income Taxes,during an Inflationary Period,which