The correct answer is B. LIFO Method.
The LIFO method (Last In, First Out) is a method of accounting for inventory that assumes that the most recently purchased items are sold first. This means that the cost of goods sold is based on the most recent prices, which can result in a lower valuation of inventory and lower income when prices are rising.
The FIFO method (First In, First Out) is a method of accounting for inventory that assumes that the oldest items are sold first. This means that the cost of goods sold is based on the oldest prices, which can result in a higher valuation of inventory and higher income when prices are rising.
The Simple Average Method is a method of accounting for inventory that assumes that the average cost of all items in inventory is used to calculate the cost of goods sold. This method can result in a valuation of inventory that is somewhere between the valuation under the FIFO and LIFO methods.
The Weighted Average Method is a method of accounting for inventory that assumes that the cost of goods sold is based on the weighted average of the cost of all items in inventory. This method is similar to the Simple Average Method, but it takes into account the quantity of each item in inventory.
In conclusion, the LIFO method results in a lower valuation of inventory and lower income when prices are rising.