In a period of rising prices,the inventory costing method that will cause the company to have the lowest cost of goods sold is:
A) LIFO.
B) FIFO.
C) Weighted average.
D) Specific identification.

Question

Quizplus · Accepted Answer

In a period of rising prices, FIFO (First-In, First-Out) results in the lowest cost of goods sold because it assumes that the oldest, and typically cheaper, inventory is sold first.

In a Period of Rising Prices,the Inventory Costing Method That