If the LIFO Reserve increases during the year, Cost of Goods Sold will higher under LIFO than FIFO.

Name: If the LIFO Reserve increases during the year, Cost of Goods Sold will higher under LIFO than FIFO.
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When the LIFO Reserve increases, it means that the cost of the most recent inventory purchases is being deferred. This results in a higher cost of goods sold under LIFO than FIFO, as the older, lower-cost inventory is being sold first.

If the LIFO Reserve Increases During the Year, Cost of Goods