When inventory costs are declining, which of the following inventory costing method will result in the lowest ending merchandise inventory?

Question

Quizplus · Accepted Answer

When inventory costs are declining, the First-in, first-out (FIFO) method results in the lowest ending merchandise inventory because the older, higher-cost items are sold first, leaving the newer, lower-cost items in inventory.

When Inventory Costs Are Declining, Which of the Following Inventory