If management seeks to maximize cash flows and to preserve the quality of earnings during periods of inflation, which of the following inventory cost flow assumptions should be used? LIFO or FIFO and why?
I would say LIFO LIFO Lower Working Capital Lower Inventory Lower Net Income Lower Taxes Higher COGS Higher Cash Flows (because of lower taxes)
Got it thx
We use FIFO for Inventory in both the cases (Rising and Falling Prices), right?..Correct me If I am wrong…