contestada

In time of rising prices, ending inventory determined using the LIFO inventory assumption will be ________ than ending inventory determined using the FIFO inventory assumption.

Respuesta :

canigeloy

Answer:

LOWER

Explanation:

In time of rising prices, the inventory valuation made according to LIFO ( LAST IN FIRST OUT )  will be LOWER than the one valued according to FIFO ( FIRST IN FIRST OUT ) method.

The reason is that in LIFO, the newer stock is sold first, therefore, the remaining inventory is valued according to older purchases, that in inflationary context have lower prices.

Otras preguntas