During a year of rising prices and increasing inventory, which cost flow assumption would measure the largest inventory turnover ratio?

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LIFO (Last In, First Out) would measure the largest inventory turnover ratio during a year of rising prices and increasing inventory. This is because LIFO assumes that the most recently acquired items are sold first, leading to older, lower-cost inventory remaining on the balance sheet. In a period of rising prices, this results in lower ending inventory values and higher cost of goods sold (COGS), which in turn increases the inventory turnover ratio.

During a Year of Rising Prices and Increasing Inventory, Which