Titan Company changed its inventory cost flow assumption from FIFO to LIFO in a period of rising prices.What was the result of the change on net income in the year of the change?

A) increased net income
B) decreased net income
C) no change in net income
D) cannot determine from the information provided

Inventory Cost Flow

An accounting method that determines the value of sold inventory and ending inventory, can be FIFO, LIFO, or Average Cost.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue. It represents the company's bottom line.

Rising Prices

An economic situation characterized by a general increase in the prices of goods and services.