Because LIFO Uses Older Costs for Inventory,in Times of Rising

question 58

Multiple Choice

Because LIFO uses older costs for inventory,in times of rising units costs:

• A)LIFO results in a higher book value of inventory and lower inventory turnover ratio than FIFO.
• B)LIFO results in a lower book value of inventory and lower inventory turnover ratio than FIFO.
• C)LIFO results in a higher book value of inventory and higher inventory turnover ratio than FIFO.
• D)LIFO results in a lower book value of inventory and higher inventory turnover ratio than FIFO.