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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.

A. inventory balance
B. taxes
C. COGS
D. net income
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User Contributed Comments 1

User Comment
guna In LIFO, latest rising prices will give higher costs -> lower tax
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Your review questions and global ranking system were so helpful.
Lina

Lina

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® 2024 Level I Curriculum, Volume 2, Module 6.