Which inventory costing method can result in lower income taxes during periods of inflation?
Which inventory costing method can result in lower income taxes during periods of inflation?
انوینٹری کی لاگت کا کون سا طریقہ مہنگائی کے ادوار میں کم انکم ٹیکس کا نتیجہ ہو سکتا ہے؟
Explanation
During inflation, prices rise, and later purchases cost more.
LIFO sells the latest (higher-priced) items first, increasing COGS.
It reducing net income, resulting in lower income taxes.