Which of the following inventory costing methods yields the highest Gross profit when costs are rising during the accounting period?

Name: Which of the following inventory costing methods yields the highest Gross profit when costs are rising during the accounting period?
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Question

Quizplus · Accepted Answer

When costs are rising, the First-In, First-Out (FIFO) method results in lower cost of goods sold and higher gross profit because it assumes that the oldest, and typically cheaper, inventory is sold first.

Which of the Following Inventory Costing Methods Yields the Highest