In a period of increasing prices, which inventory cost flow method will result in the lowest gross profit?

Question

Quizplus · Accepted Answer

LIFO assumes that the most recently purchased inventory items are sold first, resulting in higher costs of goods sold and lower ending inventory values compared to FIFO and average cost methods. In a period of increasing prices, this leads to a lower gross profit under LIFO compared to the other methods.

In a Period of Increasing Prices, Which Inventory Cost Flow