Why would management prefer to use lifo over fifo

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Reference no: EM131527723

Question: Assume that a firm separately determined inventory under fifo and lifo and then compared the results.

1. In each space below, place the correct sign [less than (<), greater="" than=""><), or="" equal="" (=")]" for="" each="" comparison,="" assuming="" periods="" of="" rising="">

a. Lifo inventory _________ Fifo Inventory

b. Lifo cost of goods sold _________ Fifo cost of goods sold

c. Lifo net income _________ Fifo net income

d. Lifo income tax _________ Fifo income tax

2. Why would management prefer to use lifo over fifo in periods of rising prices?

Reference no: EM131527723

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