During periods of inflation,when comparing LIFO with FIFO:
A)LIFO inventory and cost of sales would be higher.
B)LIFO inventory and cost of sales would be lower.
C)LIFO inventory would be lower and cost of sales would be higher.
D)LIFO inventory would be higher and cost of sales would be lower.

Question

Quizplus · Accepted Answer

During periods of inflation, the Last In, First Out (LIFO) method results in the most recent, higher-cost items being sold first, leading to higher cost of sales and lower ending inventory compared to the First In, First Out (FIFO) method.

During Periods of Inflation,when Comparing LIFO with FIFO