________ produces the lowest cost of goods sold and the highest gross profit when prices are increasing.

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) accounting method produces the lowest cost of goods sold and the highest gross profit when prices are increasing because it assumes that the oldest inventory (which was acquired at lower prices) is sold first, leaving the more recently acquired (higher cost) inventory in stock.

________ Produces the Lowest Cost of Goods Sold and the Highest