Which of the Following Will Occur When Inventory Costs Are

question 17

Multiple Choice

Which of the following will occur when inventory costs are decreasing?

• A) LIFO will result in lower net income and lower ending inventory than will FIFO.
• B) FIFO will result in lower net income and lower ending inventory than will LIFO.
• C) LIFO will result in a lower net income,but a higher ending inventory,than will FIFO.
• D) FIFO will result in a lower net income,but a higher ending inventory,than will LIFO.