Question

In a period of rising prices and stable inventory quantities, which of the following best describes the effect on gross profit of using LIFO as compared to FIFO?

Q: Answer-In a period of rising prices and stable inventory quantities, which of the following best describes...

Compared to FIFO, Cost of goods sold under LIFO will be higher because the most recent higher costs units are assumed to be the first units sold. Higher COGS under LIFO will result in lower gross profit revenue cost of goods sold

A Lower

B Higher

C The same

D Can’t say

E None of the above

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In a period of rising prices and stable inventory quantities, which of the following best describes the effect on gross profit of using LIFO as compared to FIFO?

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