Question: 6. If inventory levels are stable or increasing, an argument that is not in favor of the LIFO method as compared to FIFO is a.

6. If inventory levels are stable or increasing, an argument that is not in favor of the LIFO method as compared to FIFO is

a. Income taxes tend to be reduced in periods of rising prices.

b. Cost of goods sold tends to be stated at approximately current cost in the income statement.

c. Cost assignments typically parallel the physical flow of the goods.

d. Income tends to be smoothed as prices change over time.

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