Respuesta :
The inventory valuation method that results in the lowest taxable income in a period of inflation is the LIFO method.
A system of inventory accounting known as last in, first out (LIFO) registers sales of the most recently produced items as occurring first.
The lower cost of older products will be recorded as inventory since, under LIFO, the cost of the most recent things produced (or purchased) is the first to be deducted from cost of goods sold (COGS).
When prices are rising, using LIFO often reduces net revenue but offers tax benefits.
First in, first out (FIFO), where the oldest inventory items are recorded as sold first, and the average cost technique, which uses the weighted average of all units available for sale during the accounting period to compute COGS and ending inventory, are alternate ways of inventory-costing.
Hence, the correct answer is LIFO.
Learn more about LIFO:
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