Which inventory method might a company use if it wants to minimize taxable income during periods of inflation?
Which inventory method might a company use if it wants to minimize taxable income during periods of inflation?
اگر کوئی کمپنی افراط زر کے دوران قابل ٹیکس آمدنی کو کم کرنا چاہتی ہے تو وہ کون سا انوینٹری طریقہ استعمال کر سکتی ہے؟
Explanation
During periods of inflation, prices tend to rise, and LIFO allows a company to match the most recent.
It higher-cost inventory purchases with current sales.
It resulting in higher COGS (Cost of Goods Sold) and lower taxable income.