In a period of falling prices,the inventory costing method that will cause the company to have the highest cost of goods sold is:
A)FIFO.
B)LIFO.
C)Weighted average.
D)Specific identification.

Question

Quizplus · Accepted Answer

When unit costs are falling,FIFO produces higher cost of goods sold when compared to LIFO.Weighted average is a middle-of-the-road method.Specific identification assigns costs to ending inventory and cost of goods sold by tracking and identifying each specific item of inventory.

In a Period of Falling Prices,the Inventory Costing Method That