During a period of inflation, using ___ will approximate a company's current cost of ending inventory.
A)the average cost method
B)FIFO
C)the lower of cost and net realizable value
D)both FIFO and the average cost method

Question

Quizplus · Accepted Answer

During inflation, FIFO (First-In, First-Out) assumes that the oldest inventory items are sold first, so the ending inventory is made up of the most recently purchased items, which are at current costs.

During a Period of Inflation, Using ___ Will Approximate a Company's