Which of the following inventory costing methods yields the lowest gross profit when costs are rising during the accounting period?

Question

Quizplus · Accepted Answer

LIFO assumes that the most recent inventory purchases are sold first, which means that the older, cheaper inventory remains in the balance sheet. As costs increase, this method results in a lower gross profit compared to FIFO or average cost methods.

Which of the Following Inventory Costing Methods Yields the Lowest