In a period of declining prices, which of the following inventory cost formulas generally results in the lowest inventory figure on the statement of financial position?
A)average cost
B)FIFO
C)The figure would be the same under both FIFO and average cost.
D)need more information to answer

Question

Quizplus · Accepted Answer

In a period of declining prices, the FIFO (First In, First Out) method generally results in the lowest inventory figure on the statement of financial position. This is because older, higher-cost items are considered sold first, leaving the cheaper, most recently acquired items in inventory.

In a Period of Declining Prices, Which of the Following