In a period of inflation,LIFO results in a higher net income than FIFO.

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In a period of inflation, LIFO results in a lower net income than FIFO. This is because LIFO assumes that the most recent inventory items are sold first, which means the cost of goods sold (COGS) is based on the current higher prices of goods. This results in a higher COGS and lower net income when compared to FIFO, which assumes that the oldest inventory items are sold first and therefore COGS is based on older, lower cost inventory.

In a Period of Inflation,LIFO Results in a Higher Net