Answer:
d. LIFO inventory cost method
Explanation:
Last in first out i.e LIFO inventory cost method refers to the valuation method wherein the last purchased inventory i.e the latest is issued out first.
Under this method, the inventory which is purchased recently is the first to be issued. So in event of rising prices, this would lead to issuing inventory purchased at recent prices i.e high cost first.
This would in turn raise the cost of production and reduce net income. Consequently this would lead to reduced taxes.
Thus, during periods of rising prices or inflation, LIFO offers income tax savings.
