1. The main advantage to the last-in, first-out method LIFO method of inventory compared to first-in, first-out FIFO method of inventory costing include:
A. a closer relationship between ending inventory and current cost
B. higher net income with inflation.
C. Lower income tax with inflation.
D. Easier record keeping
Answer:
B
Additional Inventory Accounting Practice Problems:
FIFO Inventory and Increasing Taxes
Inventory Cost Flow Assumptions
Sunday, August 10, 2008
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1 comment:
B(why)
In my opinion C is the corrct answer.
becouse using Lifo Method with inflation(prices Increases)>>>>Higher COGS>>>>> Thus Lower NI
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