In Periods of Rising Purchase Prices and Increasing Inventory Quantities

Multiple Choice

In periods of rising purchase prices and increasing inventory quantities, LIFO results in a _____ than either FIFO or the weighted-average cost-flow assumption.

A) higher cost of goods sold; lower reported periodic income; lower current income taxes
B) lower cost of goods sold; lower reported periodic income; lower current income taxes
C) higher cost of goods sold; higher reported periodic income; lower current income taxes
D) higher cost of goods sold; higher reported periodic income; higher current income taxes
E) a lower cost of goods sold; higher reported periodic income; higher current income taxes