The primary reason for the popularity of LIFO is that it gives:

Question

Quizplus · Accepted Answer

LIFO (last-in, first-out) assumes that the most recent inventory purchased or produced is sold first. During times of inflation, this results in a lower income tax obligation because the cost of goods sold reflects the higher, more recent inventory costs. This is because LIFO assumes that the older, cheaper inventory is still on hand. Therefore, companies may choose LIFO over other inventory valuation methods to save money on taxes.

The Primary Reason for the Popularity of LIFO Is That