Which of the following inventory costing methods yields the lowest Cost of sales when costs are rising during the accounting period?

Name: Which of the following inventory costing methods yields the lowest Cost of sales when costs are rising during the accounting period?
Brand: Quizplus
Rating: 4.8 (57 reviews)

Question

Quizplus · Accepted Answer

When costs are rising, the First-In, First-Out (FIFO) method results in the lowest cost of sales because it assigns the oldest, and typically cheaper, costs to the cost of goods sold.

Which of the Following Inventory Costing Methods Yields the Lowest