Give arguments in favor of following statement.
“FIFO method for inventory valuation may increase income tax due as well as showing true financial position of a business with respect to inventory during the period of rising prices.”
Check some of these sites.
http://www.google.com/search?source=ig&hl=en&rlz=1G1GGLQ_ENUS374&q=FIFO+method+for+inventory+valuation+&aq=f&oq=