thisisbrianly

Here is an example where the selling prices are increasing at the same rate as cost prices.

Cost Prices-
nov 08: 40
dec 08: 50

Selling Prices-
Jan 09: 80
Feb 09: 100

FIFO-
Jan Income: 80-40=40
Feb Income: 100-50=50

LIFO-
Jan Income: 80-50=30
Feb Income: 100-40=60

So LIFO will always lead to lower taxes in rising prices.