which is better lifo or fifo 
that depends on the business you re in and whether you run a public company the lifo method decreases net income on paper that reduces the taxes you owe assuming that inflation is at work if you re running a public company lower earnings may not impress your shareholders most companies that use lifo are those that are forced to maintain a large amount of inventory at all times by offsetting sales income with their highest purchase prices they produce less taxable income on paper 