Question

Under LIFO, net income exists if revenues are sufficient to cover the __________ cost of the units of inventory sold, provided new units are acquired before the end of the accounting period.

Answer 1

Answer:

total

Explanation:

Remember, a LIFO method of accounting for inventory differs in that it  records the most recently produced items as sold first; meaning Last in, First Out. Thus leading to recording  the lowest cost of older products in the inventory.

A case of lower Net income (income after deductions of cost) thus exists if revenues are sufficient to cover the total cost of the units of inventory sold which reduces taxes.