in periods of rising prices, under which inventory cost flow assumption does the profitability ratios (pm, roa, roe) appear to be lower?

With LIFO inventory management, the last product or material received is used up first, resulting in the earliest consignment making up the stock on hand.

In the LIFO inventory valuation method, the most recent stock of products is distributed first.
Displays the oldest stock.
As evidenced by the cost of goods sold IFRS, LIFO is not advised for accounting inventory valuation.
When the economy is experiencing inflation, the income tax displays the bare minimum.
A higher income tax amount is indicated in cases of deflation.

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tutorconsortium127 tutorconsortium127 · Answer 2 · 2022-11-14T16:03:57+01:00

In periods of rising prices, LIFO inventory cost flow assumption results in lower profitability ratios.

With LIFO inventory management, the last product or material received is used up first, resulting in the earliest consignment making up the stock on hand.
In the LIFO inventory valuation method, the most recent stock of products is distributed first.
Displays the oldest stock.
As evidenced by the cost of goods sold IFRS, LIFO is not advised for accounting inventory valuation.
When the economy is experiencing inflation, the income tax displays the bare minimum.
A higher income tax amount is indicated in cases of deflation.

To learn more about LIFO, refer to

https://brainly.com/question/26428647

#SPJ4