When Inventory Prices Are Falling, the LIFO Costing Method Will

question 29

Multiple Choice

When inventory prices are falling, the LIFO costing method will generally result in:

• A) a lower gross profit than under FIFO.
• B) a higher gross profit than under FIFO.
• C) a lower inventory value than under FIFO.
• D) the same inventory value as FIFO.