If inventory costs have been falling during the year,which cost method results in the highest gross profit for the year?
A)Specific identification
B)Weighted average cost
C)LIFO
D)FIFO

Question

Quizplus · Accepted Answer

The inventory costing method that assigns the highest cost to ending inventory will assign the lowest cost to cost of goods sold,which results in the highest gross profit.If inventory costs have been falling during the year,the LIFO method will result in the highest cost of ending inventory and,therefore,the highest gross profit.

If Inventory Costs Have Been Falling During the Year,which Cost