An inventory accounting method called Last in First Out (LIFO) works on the assumption that the most recent products added to inventory are the first ones to be sold first. This system works well for retail businesses specializing in non-perishable goods and a low risk of obsolescence. Increases COGS and lessen net profit (reducing annual tax liability) if more recently purchased goods are more expensive.

For this discussion choose a product and explain and defend using the LIFO method for inventory accounting. Why are you using it and what is the benefit over First in First Out (FIFO).

Summarize the case.