In a period of inflation the cost flow method that results in the lowest income taxes is the

A) FIFO method.
B) LIFO method.
C) average-cost method.
D) gross profit method.

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

LIFO Method

Last-In, First-Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Income Taxes

Taxes imposed by the government on the income generated by individuals or entities within their jurisdiction.