Question

Because LIFO uses older costs for inventory, in times of rising units costs:

A) LIFO results in a higher book value of inventory and lower inventory turnover ratio than FIFO.

B) LIFO results in a lower book value of inventory and lower inventory turnover ratio than FIFO.

C) LIFO results in a higher book value of inventory and higher inventory turnover ratio than FIFO.

D) LIFO results in a lower book value of inventory and higher inventory turnover ratio than FIFO.

Answer

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