If costs are rising the LIFO method will generally result in

If costs are rising, the LIFO method will generally result in lower taxes. a) True b) False

Solution

LIFO method means Last in First Out. So inventory purchase later will sale first

So when the cost is rising than later purchase inventiory is costlier and Cost of Goods Sold is increase due to this. and when the COGS is more than the expenses will be more and income will be reduced and when income reduced than result in lower taxes.

So, As per the Above ,

Answer = Option a) True