The LIFO method has an advantage over FIFO in that stocks are valued at?

By: |Published on: Dec 2|Categories: Accounting JAMB| 0 comments

A. previous prices
B. current prices
C. average rates
D. flat rates

Correct Answer:

Option B – current prices

Explanation

LIFO is used by firms to lower their tax liabilities at the expense of an outdated inventory value as reflected on the balance sheet.

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