In a period of inflation, the cost flow method that results in the lowest net income is the

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Quizplus · Accepted Answer

During inflation, LIFO (Last-In, First-Out) method results in the lowest net income, as it assumes that the last inventory purchased is the first item sold, and the cost of the most recently purchased inventory is higher due to inflation. As a result, the cost of goods sold is higher, which reduces the net income. Therefore, LIFO is the best choice in this scenario.

In a Period of Inflation, the Cost Flow Method That