wilslm

Bcos of LIFO Liquidation - older, lower priced Inventory flow thro' COGS.
As a result of that - your net income is boosted due to "lower COGS" when compared to normal LIFO Inventory.

So your net income is inflated.

However, I am not sure if this is discussed anywhere in the CFAI Books. [If it is and I am mistaken, please point me to the source].

CP