Which of the Following Would Be True If Inventory Costs

question 13

Multiple Choice

Which of the following would be true if inventory costs were increasing?

• A) LIFO would result in lower net income and lower ending inventory amounts than would FIFO
• B) FIFO would result in lower net income and higher ending inventory amounts than would LIFO
• C) LIFO would result in a lower net income amount but a higher ending inventory amount than would FIFO
• D) None of these would be true

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