Respuesta :
The inventory flow assumption will result in the lowest amount of income tax expense is b. LIFO
FIFO (first in, first out) inventory management seeks to fee stock so the commercial enterprise is much less probably to lose money when merchandise expires or grows to be obsolete. LIFO (closing in, first out) inventory control is higher for nonperishable items and makes use of cutting-edge charges to calculate the price of goods sold.
To calculate FIFO (First-In, First Out) decide the value of your oldest inventory and multiply that value by the amount of inventory sold, while to calculate LIFO (closing-in, First-Out) determine the fee of your most current stock and multiply it through the amount of stock sold.
That buys coffee mugs from wholesalers and sells them on the internet. One Cup's fee of goods bought (COGS) differs when it makes use of LIFO versus whilst it uses FIFO. Inside the first state of affairs, the rate of wholesale mugs is rising from 2016 to 2019.
Learn more about the LIFO here: https://brainly.com/question/10026597
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The question is incomplete. Please read below to find the missing content.
In a period of increasing prices, which inventory flow assumption will result in the lowest amount of income tax expense?
a. FIFO
b. LIFO
c. Average cost method
d. Income tax expense for the period will be the same under all assumptions
