When the price of inventory is decreasing, which of the following is true regarding the three best-known inventory valuation methods?
A) The LIFO method will yield the smallest amount for cost of goods sold.
B) The weighted-average method will yield the largest amount for closing inventory.
C) The FIFO method will yield the highest amount for closing inventory.
D) Both LIFO and FIFO will yield a smaller tax obligation than weighted-average.

Question

Quizplus · Accepted Answer

The Answer of When the price of inventory is decreasing, which of the following is true regarding the three best-known inventory valuation methods?
A) The LIFO method will yield the smallest amount for cost of goods sold.
B) The weighted-average method will yield the largest amount for closing inventory.
C) The FIFO method will yield the highest amount for closing inventory.
D) Both LIFO and FIFO will yield a smaller tax obligation than weighted-average.

When the Price of Inventory Is Decreasing, Which of the Following