Question: Explain the difference between FIFO, LIFO, and average cost. Which one leads to higher taxes in an inflationary environment? Then contrast the three inventory cost-flow

Explain the difference between FIFO, LIFO, and average cost. Which one leads to higher taxes in an inflationary environment? Then contrast the three inventory cost-flow assumptions (LIFO, FIFO, average cost). Which one of the three inventory cost-flow assumptions leads to higher net income in an inflationary environment?

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