Which of the following inventory costing methods results in the lowest value of ending inventory during a period of rising inventory costs?

Question

Quizplus · Accepted Answer

LIFO assumes that the last items purchased are the first items sold, which means that the cost of goods sold reflects the higher current costs. As a result, the ending inventory is valued at the older, lower costs, resulting in a lower value of ending inventory during a period of rising inventory costs.

Which of the Following Inventory Costing Methods Results in the Lowest