When inventory costs are rising, FIFO results in the highest cost of goods sold and the lowest gross margin.

Name: When inventory costs are rising, FIFO results in the highest cost of goods sold and the lowest gross margin.
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Question

Quizplus · Accepted Answer

When inventory costs are rising, FIFO (First In, First Out) accounting results in the lowest cost of goods sold and the highest gross margin, because the older, cheaper costs are recorded as cost of goods sold first.

When Inventory Costs Are Rising, FIFO Results in the Highest