honeycfa

Which of the following statements regarding inventory methods used during periods of rising prices is least accurate?

A) FIFO results in higher inventory balances than LIFO.

B) FIFO results in higher taxes than LIFO.

C) LIFO results in lower cost of goods sold than FIFO.

---

LIFO results in higher cost of goods sold during periods of rising prices because the last items bought, which are the most expensive, are the first items sold resulting in a higher cost of goods sold.

tracylaubb

thx