A Firm Has Used LIFO for Several Years During Which

Multiple Choice

A firm has used LIFO for several years during which costs have trended higher. The effect on 2014 net income using LIFO, relative to FIFO, will be:

A) net income for 2014 will be greater under LIFO than FIFO.
B) net income for 2014 will be less under LIFO than FIFO.
C) net income for 2014 will be the same under LIFO as under FIFO.
D) can't tell from the information given.