In a period of rising prices, the effect of selecting the FIFO rather than the LIFO method of inventory valuation results in:
A) a higher days' sales in inventory.
B) a lower return on sales.
C) a lower days' sales in inventory.
D) a higher days' sales in receivables.

Question

Quizplus · Accepted Answer

In a period of rising prices, FIFO results in lower cost of goods sold and higher ending inventory values, leading to a higher days' sales in inventory.

In a Period of Rising Prices, the Effect of Selecting