During a period of inflation, using ___ will approximate a company's current cost of ending inventory.
A) the average cost formula
B) FIFO
C) the lower of cost and net realizable value
D) both FIFO and the average cost formula

Question

Quizplus · Accepted Answer

During inflation, FIFO (First-In, First-Out) results in ending inventory that reflects more recent, higher costs, approximating current cost.

During a Period of Inflation, Using ___ Will Approximate a Company's