In a period of falling prices, the use of which of the following inventory cost flow methods would typically result in the highest cost of goods sold?

Name: In a period of falling prices, the use of which of the following inventory cost flow methods would typically result in the highest cost of goods sold?
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Question

Quizplus · Accepted Answer

In a period of falling prices, FIFO (First-In, First-Out) results in the highest cost of goods sold because the older, higher-cost inventory is sold first.

In a Period of Falling Prices, the Use of Which