Concept:LIFO (Last-In, First-Out) assigns the most recent, higher costs to cost of goods sold during rising prices.
Explanation:Under LIFO, the latest goods purchased are assumed to be sold first.
In a period of rising prices, these latest goods have higher purchase costs.
Therefore, the cost of goods sold is higher, while closing stock is valued at older, lower costs.
Higher cost of goods sold leads to lower gross profit and lower income tax.
Answer:A. have a higher cost of goods sold