In Periods of Rising Prices, Which Is an Advantage of Using

question 162

Multiple Choice

In periods of rising prices, which is an advantage of using the LIFO inventory costing method?

• A)Ending inventory will include latest (most recent) costs and thus be more realistic.
• B)Cost of goods sold will include the latest (most recent) costs and thus will be more realistic.
• C)Net income will be the highest and thus reflect the prosperity of the company.
• D)Phantom profits are reported.

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