{"id":50713,"date":"2024-04-15T23:14:16","date_gmt":"2024-04-15T23:14:16","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=50713"},"modified":"2024-04-15T23:14:16","modified_gmt":"2024-04-15T23:14:16","slug":"in-case-of-rising-prices-inflation-lifo-will","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-rising-prices-inflation-lifo-will\/","title":{"rendered":"In case of rising prices (inflation), LIFO will:"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;provide lowest value of closing stock and profit&#8221; option2=&#8221;provide highest value of closing stock and profit&#8221; option3=&#8221;provide highest value of closing stock but lowest value of profit&#8221; option4=&#8221;provide highest value of profit but lowest value of closing stock&#8221; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>C. provide highest value of closing stock but lowest value of profit<\/strong><\/p>\n<p>In case of rising prices (inflation), LIFO will provide the highest value of closing stock but the lowest value of profit. This is because LIFO stands for Last In, First Out. This means that the last items that were purchased are the first items that are sold. In a period of rising prices, this means that the cost of goods sold will be based on the higher prices of the most recent purchases. This will result in a lower profit margin.<\/p>\n<p>The other options are incorrect for the following reasons:<\/p>\n<ul>\n<li>Option A is incorrect because LIFO will provide the highest value of closing stock, not the lowest value.<\/li>\n<li>Option B is incorrect because LIFO will provide the lowest value of profit, not the highest value.<\/li>\n<li>Option D is incorrect because LIFO will provide the highest value of closing stock, not the lowest value.<\/li>\n<\/ul>\n<p>I hope this explanation is helpful. Please let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;provide lowest value of closing stock and profit&#8221; option2=&#8221;provide highest value of closing stock and profit&#8221; option3=&#8221;provide highest value of closing stock but lowest value of profit&#8221; option4=&#8221;provide highest value of profit but lowest value of closing stock&#8221; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-50713","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>In case of rising prices (inflation), LIFO will:<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-rising-prices-inflation-lifo-will\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In case of rising prices (inflation), LIFO will:\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;provide lowest value of closing stock and profit&#8221; 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