Question 6 LIFO tends to decrease taxes when costs are declining. LIFO will always yield the...

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Question 6 LIFO tends to decrease taxes when costs are declining. LIFO will always yield the...

Question 6

LIFO tends to decrease taxes when

costs are declining.

LIFO will always yield the lowest possible taxes.

costs are increasing.

costs are constant.

Impossible to determine without specific cost data

business accounting

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Answer 1

Answer #1

LIFO tends to decrease taxes when

Costs are increasing

Under Last in first out method, goods comes last are goes out first

If Cost of the units are increasing then profit should be low

Hence Tax should also be lower on Lower profit

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Answer 2

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		costs are declining.
		LIFO will always yield the lowest possible taxes.
		costs are increasing.
		costs are constant.
		Impossible to determine without specific cost data

Question 6 LIFO tends to decrease taxes when costs are declining. LIFO will always yield the...

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