alleryStart learning →In a period of rising prices, FIFO gives what compared with LIFO?
ALower profit and higher COGS
BHigher closing stock, lower COGS
CLower closing stock, higher COGS
DSame closing stock and COGS
Answer & Solution
Correct answer: B. Higher closing stock, lower COGS
FIFO issues older, cheaper units first, so cost of goods sold is lower and the remaining stock carries newer, higher costs.
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