The FIFO inventory cost determination method will result in a higher cash flow to a company than weighted average.

Question

Quizplus · Accepted Answer

This statement is false. The FIFO method may result in higher net income (which could impact cash flow indirectly), but it does not necessarily result in higher cash flow compared to the weighted average method. The cash flow impact of inventory cost determination depends on various factors such as inventory turnover, pricing strategies, and purchasing patterns.

The FIFO Inventory Cost Determination Method Will Result in a Higher