Match each description to the appropriate cost flow assumption (a-c).
-Produces the highest ending inventory when costs are increasing
A)FIFO
B)LIFO
C)Weighted average

Question

Quizplus · Accepted Answer

FIFO assumes that the first inventory purchased is the first sold, meaning that the ending inventory includes the most recently purchased inventory. In times of rising costs, this results in a higher ending inventory value.

Match Each Description to the Appropriate Cost Flow Assumption (A-C)