During periods of stable purchase prices, FIFO produces the highest ending inventory relative to the other inventory costing methods.

Name: During periods of stable purchase prices, FIFO produces the highest ending inventory relative to the other inventory costing methods.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

During periods of stable purchase prices, the choice of inventory costing method (FIFO, LIFO, or average cost) has minimal impact on the ending inventory valuation because the cost of goods remains relatively constant.

During Periods of Stable Purchase Prices, FIFO Produces the Highest