Using ASPE, the ______________ method of inventory costing is most likely to lead to inflation-induced profits.

Question

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The FIFO (First In, First Out) method of inventory costing assumes that the first items purchased are the first sold, meaning that the most recently purchased items are left in inventory. This can lead to inflation-induced profits because as prices increase, the older, lower-priced inventory is deemed to have been sold first, resulting in a higher cost of goods sold and thus lower profits.

Using ASPE, the ______________ Method of Inventory Costing Is Most