In a period of falling prices, which inventory method generally provides the greatest amount of net income?
A) Average cost.
B) FIFO.
C) LIFO.
D) Specific identification.

Question

Quizplus · Accepted Answer

In a period of falling prices, LIFO (Last-In, First-Out) generally results in lower cost of goods sold and higher net income compared to other methods, as the most recently acquired, cheaper inventory is considered sold first.

In a Period of Falling Prices, Which Inventory Method Generally