During a period of increasing purchase prices,which inventory costing method will yield the lowest cost of goods sold?
A)Any method in which the company uses a periodic system.
B)FIFO
C)LIFO
D)Weighted average cost

Question

Quizplus · Accepted Answer

During periods of rising prices, FIFO (First-In, First-Out) results in lower cost of goods sold because it assumes that the oldest, and typically cheaper, inventory is sold first.

During a Period of Increasing Purchase Prices,which Inventory Costing Method