EX 7-14 Comparing inventory methods OBJ. 5 Assume that a firm separately determined inventory under FIFO and LIFO and then compared the results a. In each space that follows, place the correct sign [less than (), equal for each comparison, assuming periods of rising prices. or 1. FIFO inventory LIFO inventory 2. FIFO cost of merchandise sold LIFO cost of merchandise sold 3. FIFO net income LIFO net income 4. FIFO income taxes LIFO income taxes b. Why would management prefer to use LIFO over FIFO in periods of rising prices