What happens to COGS if a company switches from FIFO to LIFO in a period of rising prices?
اگر کوئی کمپنی بڑھتی ہوئی قیمتوں کے دوران لیفو سے فیفو میں تبدیل ہو جاتی ہے تو سی او جی ایس کا کیا ہوتا ہے؟
Answer: COGS increases
Explanation
In a period of rising prices, LIFO results in higher COGS.
Because the most recent (and more expensive) inventory is assumed to be sold first.
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