Question

Which system of inventory accounting increases the firms value by minimizing the present value of tax payments? Fifo or lifo

Answer 1

Answer:

Explanation:

The LIFO method results in less net income because COGS is greater. FIFO gives us a good indication of ending inventory value, but it also increases net income because inventory that might be several years old is used to value COGS. ... Average cost produces results that fall somewhere between FIFO and LIFO.