Question
in a period of rising prices, FIFO will have?
a. lower net income than LIFO
b. lower costs of goods sold than LIFO
c. lower income tax expense than LIFO
d. lower net purchases than LIFO
Best Answer
Chosen by Asker
I'd say b only
b - because you are moving the cost of your older, earlier purchased products - so their cost should be lower than something purchased more recently.
