LIFO's Tax Advantage Is That

question 53

Multiple Choice

LIFO's tax advantage is that

• A)it provides a higher net income than FIFO during periods of rising prices and nondecreasing inventory quantities.
• B)it provides a lower net income than FIFO during periods of rising prices and nondecreasing inventory quantities.
• C)it provides a lower net income than FIFO during periods of falling prices and nondecreasing inventory quantities.
• D)it provides a lower net income than FIFO during periods of rising prices and decreasing inventory quantities.