Which of the Following Statements Is Correct When Inventory Unit

question 113

Multiple Choice

Which of the following statements is correct when inventory unit costs are increasing?

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