Which of the following statements is correct when inventory unit costs are increasing?
A)LIFO's ending inventory will be the largest among the inventory costing methods.
B)FIFO's gross profit will be the lowest among the inventory costing methods.
C)Inventory turnover will be the largest when the LIFO inventory method is used.
D)Use of the LIFO method will result in lower cash flows due to an increased cost of goods sold.

Question

Quizplus · Accepted Answer

When inventory unit costs are increasing, LIFO results in higher cost of goods sold, which reduces ending inventory and increases inventory turnover.

Which of the Following Statements Is Correct When Inventory Unit