Which method (FIFO or LIFO) would be preferred for income rates purposes within period of on the way out prices? WHY?
Answers:
In period of seen better days prices, respectively shipment of merchandize you purchase would cost smaller quantity than the previous shipment, so if your cost formula be FIFO, you'd be value your end inventory at the most recent (and as a result lower) costs, resulting in a lower closing moments inventory, and accordingly highly developed COGS and lower profit, thereby resulting in a lower duty to be compensated.