Which of the following methods results in the higher value for cost of goods sold in times of rising inventory prices?
A) First-in, first-out
B) Weighted average cost
C) Last-in, first-out
D) None of the above

Question

Quizplus · Accepted Answer

In times of rising inventory prices, the Last-in, First-out (LIFO) method results in a higher cost of goods sold (COGS) because it assumes that the most recently acquired (and presumably more expensive) inventory items are sold first.

Which of the Following Methods Results in the Higher Value