If purchase prices are falling,which cost flow assumption provides the highest cost of goods sold?
A) FIFO
B) Annual weighted average
C) Moving weighted average
D) LIFO

Name: If purchase prices are falling,which cost flow assumption provides the highest cost of goods sold? A) FIFO B) Annual weighted average C) Moving weighted average D) LIFO
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Question

Quizplus · Accepted Answer

In a period of falling prices, FIFO (First-In, First-Out) results in the highest cost of goods sold because the older, higher-cost inventory is used up first.

If Purchase Prices Are Falling,which Cost Flow Assumption Provides the Highest