Which Inventory Method Is Better Described as Having an Income

question 21

Multiple Choice

Which inventory method is better described as having an income statement focus and why is it considered as such?

• A)FIFO; better approximates the value of ending inventory.
• B)LIFO; better approximates the value of ending inventory.
• C)LIFO; better approximates inventory cost necessary to generate revenue.
• D)FIFO; better approximates inventory cost necessary to generate revenue.