At a time of declining prices, which cost flow assumption will result in the highest ending inventory?
A)FIFO
B)LIFO
C)Weighted average
D)Either A or C

Name: At a time of declining prices, which cost flow assumption will result in the highest ending inventory? A)FIFO B)LIFO C)Weighted average D)Either A or C
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Question

Quizplus · Accepted Answer

In a period of declining prices, LIFO will result in the lowest cost of goods sold (most recent purchases) and the highest ending inventory (earliest purchases).

At a Time of Declining Prices, Which Cost Flow Assumption