CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

During a time of increasing inventory and rising prices, FIFO will result in ______ than LIFO.

A. higher COGS
B. higher taxes
C. lower net income
D. lower working capital
Correct Answer: B

User Contributed Comments 2

User Comment
guna In FIFO, original prices < latest rising prices, so lower costs results in higher taxes
teddajr Lower COGS -> Higher EB(I)T -> Higher taxes
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