[Biz] lifo vs fifo

1. lifo benefit The biggest benefit of LIFO is a tax advantage. During times of inflation, LIFO results in a higher cost of goods sold and a lower balance of remaining inventory.

A higher cost of goods sold means lower net income, which results in a smaller tax liability. 2. fifo benefit FIFO is a more realistic inventory method than LIFO. Most companies try to sell their oldest inventory first .....