Match the costs that might be included as part of the cost of inventory to the listed accounting treatment. (Choices may be used more than once.)
-Prices are declining; ending inventory is lower with this method.

Question

Quizplus · Accepted Answer

In a declining price environment, using a method like LIFO (Last-In, First-Out) results in a lower ending inventory value because the most recent, lower-cost items are considered sold first, leaving the older, higher-cost items in inventory.

Match the Costs That Might Be Included as Part of the Cost