Answer:
Explanation:
LIFO which means “Last-In, First-Out”
can be regarded as method which is used in case of cost flow assumption purposes during the calculations of cost of goods sold . LIFO method can be used when placing accounting value on inventory. LIFO method works with the assumption that last item of particular inventory that was purchased is the first one that is sold
It should be noted that When sales exceed production and the company uses the LIFO inventory flow assumption, the net operating income reported under variable costing generally will be greater than net operating income reported under variable costing.
