Assuming rising prices, which method will give the highest dollar value for cost of goods sold on the income statement?
A) FIFO
B) Average Cost
C) LIFO
D) All of these give equal values for cost of goods sold

Question

Quizplus · Accepted Answer

Under LIFO, the most costly units are the ones last purchased. LIFO matches these higher cost items against sales as cost of goods sold.

Assuming Rising Prices, Which Method Will Give the Highest Dollar