D makes an assumption about price movements not included in the question. FIFO does not value inventory at close to current replacement as that would be LIFO - most recent prices paid.
In a rising price environment, higher profits from FIFO result in higher taxable income, increasing current-period income taxes compared to methods like LIFO.
A voting comment increases the vote count for the chosen answer by one.
Upvoting a comment with a selected answer will also increase the vote count towards that answer by one.
So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.
137a7a9
2 weeks, 4 days agoCrazyhydra
6 months, 4 weeks agoemtofid
3 months, 1 week ago