Which of the following statements regarding inventory methods used during periods of rising prices is least accurate?
|
A) |
LIFO results in lower cost of goods sold than FIFO. | |
|
B) |
FIFO results in higher inventory balances than LIFO. | |
|
C) |
FIFO results in higher taxes than LIFO. | |
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. | 
发表于 2010-4-19 22:22
| 
