Question

write a short note on LIFO (5 marks)​

Answer 1

Answer:

may this help you

Explanation:

Last in, first out (LIFO) is a method used to account for inventory.

Under LIFO, the costs of the most recent products purchased (or produced) are the first to be expensed.

LIFO is used only in the United States and governed by the generally accepted accounting principles (GAAP).

Other methods to account for inventory include first in, first out (FIFO) and the average cost method.

Using LIFO typically lowers net income but is tax advantageous when prices are rising.