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Basic Question 14 of 16
During a time of increasing inventory and rising prices, LIFO will result in higher ______ than FIFO.
B. taxes
C. COGS
D. net income
A. inventory balance
B. taxes
C. COGS
D. net income
User Contributed Comments 1
| User | Comment |
|---|---|
| guna | In LIFO, latest rising prices will give higher costs -> lower tax |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
calculate and explain how inflation and deflation of inventory costs affect the financial statements and ratios of companies that use different inventory valuation methods
CFA® 2025 Level I Curriculum, Volume 2, Module 6.