Which of the Following Statements Is Correct When Inventory Unit

Multiple Choice

Which of the following statements is correct when inventory unit costs are decreasing?

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