If FIFO Is Used for Inventory Valuation Instead of LIFO

question 19

Multiple Choice

If FIFO is used for inventory valuation instead of LIFO when prices are falling:

• A)Cost of goods sold will be less under FIFO than LIFO.
• B)Cost of goods sold will be more under FIFO than LIFO.
• C)Inventory value will be less under FIFO than LIFO.
• D)There is no difference in inventory or cost of goods sold.

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