joemoran

MLAMOTHE Wrote:
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> Correct me if I'm wrong, but it doesn't matter if
> the selling price of the final product increases
> or decreases. The question at hand is whether
> LIFO decreases income taxes COMPARED to FIFO in a
> COGS inflationary environment. Therefore, no
> matter whether the final product selling price is
> going up, down, or staying the same, as long as it
> is standardized between FIFO and LIFO, LIFO will
> always create lower income taxes in a COGS
> inflationary environment. Correct?

Correct. The idea is to compare LIFO vs FIFO for ANY given Sales price.