Therefore, the cost applied to goods sold under the LIFO method is the lowest if the most recent cost of inventory purchases is declining. A large net income results from a low cost of products sold.
In business and accounting, net income (also known as total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income less costs of goods sold, expenses, depreciation and amortization, interest, and taxes for a given accounting period. The net growth in shareholders' equity as a result of a company's operations is calculated as the residual of all revenues and gains less all expenses and losses for the period. It's distinct from gross income, which just subtracts the cost of products sold from revenue. Net income is defined as (gross) income less taxes and other deductions for households and individuals (e.g. mandatory pension contributions).
To learn more about net income, visit:
https://brainly.com/question/10207673
#SPJ4
