Which one of the following statements is not true?

A) Under conditions of rising prices, the LIFO method results in lower income than the FIFO method.
B) In most cases, the FIFO method approximates the physical flow of items in inventory.
C) The LIFO method produces a higher ending inventory value than the FIFO method.
D) The FIFO method includes holding gains in income.

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first ones sold; LIFO stands for Last-In, First-Out.

FIFO Method

First In, First Out, an inventory valuation method that assumes that the first items placed into inventory are the first sold.

Ending Inventory

The total value of goods that remain unsold at the end of the accounting period.