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, FIFO (First-In, First-Out) results in the lowest inventory figure because the older, higher-cost inventory is sold first, leaving the newer, lower-cost inventory on the balance sheet.

In a Period of Declining Prices, Which of the Following