is this an error, question 58, vol I, exam 3 aft session? higher, already, question, companies, accounting

sharksfan

Periods of rising prices and stable increasing inventory quantities, compared with companies that use FIFO inventory accounting, companies that use the LIFO method will have:
A. higher COGS and lower taxes
B. higher net inc and higher taxes
C. lower inventory balances and lower working capital
I chose A, answer is B
thanks and apologies if this was already addressed

ramdabom

From Errata (found on Schweser website):
Exam 3, Afternoon Session Page: 179  Correction
Question #58 should read as follows:
“In periods of rising prices and stable or increasing inventory quantities, compared with companies that use LIFO inventory accounting, companies that use the FIFO method will have:”
Posted: 20090420

smartpants

Yea it has to be an error, I think it was worded wrong