The effect of using the last in, first out (LIFO) method of stock valuation rather than first, in, first out (FIFO) method in a period of rising prices is:

(a) to report lower profits and a lower value of closing stock

(b) to report higher profits and a higher value of closing stock

(c) to report lower profits and a higher value of closing stock

(d) to report higher profits and a lower value of closing stock. (2 marks) CIMA Management Accounting Fundamentals