When inventory prices are rising all of the following are re

When inventory prices are? rising, all of the following are reasons for choosing the LIFO method versus the FIFO method? except:

Solution

The following are the reasons for selecting LIFO over FIFO:;

1.Cost of goods sold will include latest (most recent) costs and thus will be more realistic.

2.LIFO generally results in lower income taxes paid.

3.LIFO permits management to influence income by the timing of inventory purchases.

NOTE :

Reason for choosing the FIFO method versus the LIFO method is that LIFO reports the most up to date inventory values on the balance sheet.