During a period of falling prices, which of the following inventory methods generally results in the lowest balance sheet amount for inventory?
A) average cost method
B) LIFO method
C) FIFO method
D) cannot tell without more information

Question

Quizplus · Accepted Answer

During a period of falling prices, the FIFO (First In, First Out) method generally results in the lowest balance sheet amount for inventory. This is because older, higher-cost items are considered sold first, leaving the newer, lower-cost items in inventory.

During a Period of Falling Prices, Which of the Following