单选题 During periods of decreasing prices, what type of inventory accounting method should a firm use to report higher net income? The company should use: A. FIFO because during periods of decreasing prices, the COGS will be lower, resulting in a higher net income. B. FIFO because during periods of decreasing prices, the COGS will be higher, resulting in a higher net income. C. LIFO because during periods of decreasing prices, the COGS will be lower, resulting in a higher net income.

【正确答案】 C

【答案解析】In periods of falling prices, LIFO results in lower COGS, and therefore higher net income than FIFO, because LIFO assumes the most recently purchased ( lower cost) goods are sold first.