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tranglu
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Can anyone tell me why FIFO would result in a higher net income when prices are rising?
538 day(s) ago
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brucechangcpa
Because FIFO implies that you are using early inventory that cost less than later one if prices are rising. Even if your product price does not rise, your margins will be higher.
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Can anyone tell me why FIFO would result in a higher net income when prices are rising?
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