Which one of the following is not an advantage of using the FIFO cost flow assumption?
A)produces lowest net income in periods of rising prices
B)provides a relevant ending inventory value
C)is not as susceptible to profit manipulation by management
D)does not produce unusual results when inventory liquidation occurs

Question

Quizplus · Accepted Answer

The FIFO method produces the highest net income in periods of rising prices, as the cost of the most recently purchased inventory is used to calculate COGS. Therefore, choice A is incorrect. B, C, and D are advantages of using the FIFO cost flow assumption.

Which One of the Following Is Not an Advantage of Using