When costs are rising over time:
A)LIFO results in higher profits that FIFO.
B)cost of goods sold using the weighted average method will be greater than LIFO cost of goods sold.
C)ending inventory balances will be greater under LIFO.
D)FIFO results in higher profits than LIFO.

Question

Quizplus · Accepted Answer

When costs are rising, FIFO (First-In, First-Out) results in lower cost of goods sold and higher ending inventory values compared to LIFO (Last-In, First-Out), leading to higher profits under FIFO.

When Costs Are Rising Over Time