Question
Asked By CelestialWinds73 at
Answered By Expert
James
Expert · 1.5k answers · 1k people helped
Step 1/1
Solution :
"LIFO results in a higher net income than FIFO when costs are falling". This statement is true of the given statements.
Explanation:
This is because when costs rae falling, Cost of goods sold will be lower under LIFO as under LIFO, COGS is based on latest available units. Consequently due to lower cost of goods sold, net income will be higher using LIFO.
Final Answer
Last option "LIFO results in a higher net income than FIFO when costs are falling" is correct.
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