Which of the following is true concerning inventory cost flow assumptions?

Question

Quizplus · Accepted Answer

In a period of rising costs, LIFO (Last In, First Out) typically results in lower net income compared to FIFO (First In, First Out) because the cost of goods sold is based on the most recent inventory costs, which are higher. FIFO, not LIFO, is considered to have a balance sheet focus because it leaves older, often lower-cost inventory on the balance sheet. Therefore, none of the provided statements are true.

Which of the Following Is True Concerning Inventory Cost Flow