alleryStart learning →In rising prices, FIFO versus LIFO gives which result?
AHigher closing stock, lower COGS
BLower closing stock, higher COGS
CLower closing stock, lower COGS
DEqual closing stock and COGS
Answer & Solution
Correct answer: A. Higher closing stock, lower COGS
FIFO leaves the latest, higher-priced purchases in stock, so cost of goods sold is lower and profit higher.
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