In a period of declining prices, which of the following inventory methods generally results in the lowest balance sheet figure for inventory?
A)Average cost method
B)LIFO method
C)FIFO method
D)Need more information to answer

Question

Quizplus · Accepted Answer

In a period of declining prices, the FIFO (First-In, First-Out) method results in the lowest balance sheet figure for inventory because it assumes the oldest, higher-cost inventory is sold first, leaving the newer, lower-cost inventory on the balance sheet.

In a Period of Declining Prices, Which of the Following