NO.PZ2018062004000144
问题如下:
Assuming a periodic inventory system, technology company TBC is facing decreasing prices. Which of the following methods will make its reported profits look higher?
选项:
A. Special identification method.
B. LIFO method.
C. FIFO method.
解释:
B is correct. When the price is decreasing, the newly-purchased inventory costs less than before, adopting the LIFO method will lead to less cost of sales, and then lead to higher profit.
商品价格下降,为什么会代表inventory cost降低?我的理解是商品价格下降,利润少了,相对inventory cost是上升的。