The inventory costing method that results in the lowest taxable income in a period of inflation is the LIFO
method.

Name: The inventory costing method that results in the lowest taxable income in a period of inflation is the LIFO method.
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Question

Quizplus · Accepted Answer

The LIFO method assumes that the last units added to inventory are the first ones sold. This results in the highest cost of goods sold and lowest ending inventory value during a period of inflation, which reduces taxable income.

The Inventory Costing Method That Results in the Lowest Taxable