If prices are rising,which inventory cost flow method will produce the lowest amount of cost of goods sold?
A)LIFO
B)FIFO
C)Weighted average
D)LIFO,FIFO,and the weighted-average inventory cost flow methods will all produce equal amounts of cost of goods sold.

Question

Quizplus · Accepted Answer

When prices are rising,FIFO will produce the lowest cost of goods sold compared with other methods because it is based on the earliest,lowest priced,purchases.

If Prices Are Rising,which Inventory Cost Flow Method Will Produce