In general,when prices are rising,use of the FIFO method will result in a lower tax liability than the other methods.

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When prices are rising, the FIFO (first-in, first-out) method results in higher costs of goods sold, which in turn results in higher profits and a higher tax liability. In contrast, the LIFO (last-in, first-out) method results in lower costs of goods sold and lower profits, leading to a lower tax liability.

In General,when Prices Are Rising,use of the FIFO Method Will