Which of the following is true regarding LIFO and FIFO?

Name: Which of the following is true regarding LIFO and FIFO?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a period of rising costs, LIFO (Last In, First Out) results in lower net income than FIFO (First In, First Out) because the cost of goods sold (COGS) is higher under LIFO, as it assumes the most recently acquired (and presumably more expensive) inventory is sold first. This reduces net income compared to FIFO, where older, less expensive inventory is assumed to be sold first.

Which of the Following Is True Regarding LIFO and FIFO