In order to pay the least income tax possible in periods of constant costs, the company should use which of the following inventory costing methods?

Question

Quizplus · Accepted Answer

When costs are constant, all inventory costing methods (FIFO, LIFO, Average Cost) will result in the same cost of goods sold, net income, and tax liability, because there is no difference in the cost of inventory purchased or sold during the period.

In Order to Pay the Least Income Tax Possible in Periods