问题
单项选择题
During periods of decreasing prices, what type of inventory accounting method should a firm use to report higher net income The company should use:（）
A. FIFO because during periods of decreasing prices, the COGS will be lower, resulting in a higher net income.
B. FIFO because during periods of decreasing prices, the COGS will be higher, resulting in a higher net income.
C. LIFO because during periods of decreasing prices, the COGS will be lower, resulting in a higher net income.
答案
参考答案：C
解析：
In periods of falling prices, LIFO results in lower COGS, and therefore higher net income than FIFO, because LIFO assumes the most recently purchased ( lower cost) goods are sold first.