- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 6. Analysis of Inventories
- Subject 2. The Effects of Inflation and Deflation on Inventories, COGS and Gross Margin
CFA Practice Question
During a time of increasing inventory and rising prices, LIFO will result in higher ______ than FIFO.
B. taxes
C. COGS
D. net income
A. inventory balance
B. taxes
C. COGS
D. net income
Correct Answer: C
User Contributed Comments 1
| User | Comment |
|---|---|
| guna | In LIFO, latest rising prices will give higher costs -> lower tax |