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Janaki Rajesh
on Nov 18, 2024

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During periods of increasing costs, an advantage of the LIFO inventory cost method is that it matches more recent costs against current revenues.

Increasing Costs

A situation where production or operating expenses grow over time, often due to inflation, increased demand for resources, or higher labor costs.

LIFO Inventory Cost Method

An inventory valuation method that assumes the last items purchased are the first ones sold, affecting the company's bookkeeping and tax calculations.

Current Revenues

Income received by an entity within its normal business operations and within the current accounting period.

  • Learn about the diverse methods used for inventory valuation and their effects on financial accounts.
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Simon OlssonNov 23, 2024
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