In periods of falling prices, the inventory valuation procedure that results in the highest net income is

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In periods of falling prices, the LIFO method will result in the highest net income as it matches the most recent (higher) costs with the revenues, leaving the oldest (lower) costs in the ending inventory. This results in a higher cost of goods sold and lower ending inventory, leading to a higher net income compared to the other inventory valuation methods.

In Periods of Falling Prices, the Inventory Valuation Procedure That