During a year of rising prices and increasing inventory, which cost flow assumption would measure the largest inventory turnover ratio?

Question

Quizplus · Accepted Answer

LIFO (Last-In, First-Out) assumes the most recently acquired inventory is sold first. In a period of rising prices, this results in higher cost of goods sold and lower ending inventory, leading to a higher inventory turnover ratio.

During a Year of Rising Prices and Increasing Inventory, Which