Which of the Following Will Occur When Inventory Costs Are

Multiple Choice

Which of the following will occur when inventory costs are decreasing?

A) FIFO will result in a lower net income but a higher ending inventory than will LIFO.
B) FIFO will result in a higher net income but a lower ending inventory than will LIFO.
C) FIFO will result in a lower net income and a lower ending inventory than will LIFO.
D) FIFO will result in a higher net income and a higher ending inventory than will LIFO.