Answer:
A
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
Inflation refers to a persistent rise in general price levels.
In a period of inflation, cost of inventory keep rising. So, the most recently purchased inventory would have the highest price. The LIFO method would result in a higher cost of good sold and this depresses profit and also leads to a lower taxable income
