Question

Total questions in exam: 40   Answered: 20
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Question No. 25
The latest cost of inventories is changed to production but
the old prices are changed to inventories on hand?
FIFO
LIFO​

Answer 1

Answer:

FIFO gives a more accurate value for ending inventory on the balance sheet. On the other hand, FIFO increases net income and increased net income can increase taxes owed. The LIFO method assumes the last item entering inventory is the first sold.