In a period of rising prices, the inventory method which tends to give the highest reported cost of goods sold is
A)FIFO.
B)average cost.
C)LIFO.
D)none of these.

Question

Quizplus · Accepted Answer

LIFO assumes that the most recent inventory items purchased are the first ones sold, which means that the cost of goods sold reflects the current higher prices. This results in a higher reported cost of goods sold compared to FIFO and average cost methods.

In a Period of Rising Prices, the Inventory Method Which