Question: FIFO vs. LIFO Prepare an understanding on the difference between the FIFO methods of costing inventories as compared to the LIFO. Address the following: (1)

FIFO vs. LIFO

Prepare an understanding on the difference between the FIFO methods of costing inventories as compared to the LIFO. Address the following:

(1) Does FIFP or LIFP result in a larger or smaller net income in a period of rising prices?

(2) What is the comparative effect on net income in a period of falling prices?

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