During a period of rising inventory prices, a company's cost of goods sold would be higher using the LIFO cost flow method than with FIFO. True or False True False

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.