When inventory costs are declining, which of the following inventory costing methods will result in the highest cost of goods sold?

Question

Quizplus · Accepted Answer

When inventory costs are declining, the first-in, first-out (FIFO) method will result in the highest cost of goods sold because it assumes that the items purchased first are sold first, and therefore the oldest, highest-cost inventory is used up first. This results in a higher cost of goods sold compared to the other methods.

When Inventory Costs Are Declining, Which of the Following Inventory