Question: When prices typically increase over time, FIFO results in higher inventory values, lower cost of goods sold, and higher net income, while LIFO leads to

When prices typically increase over time, FIFO results in higher inventory values, lower cost of goods sold, and higher net income, while LIFO leads to lower inventory values, higher cost of goods sold, and lower net income. Conversely, when prices decrease, the effects are reversed, with FIFO showing lower inventory values, higher cost of goods sold, and lower net income, and LIFO exhibiting higher inventory values, lower cost of goods sold, and higher net income.

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