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 \(()\), or equal \((=)\) ] for each comparison, assuming periods of rising prices.objs. 4, 5

Transcribed Image Text:

a. FIFO inventory b. FIFO cost of goods sold c. FIFO net income d. FIFO income taxi LIFO inventory LIFO cost of goods sold LIFO net income LIFO income tax 2. Why would management prefer to use LIFO over FIFO in periods of rising prices?