Which of the following inventory costing methods yields the lowest cost of goods sold when costs are rising during the accounting period?

Question

Quizplus · Accepted Answer

When costs are rising, the First-In, First-Out (FIFO) method yields the highest ending inventory value and the lowest cost of goods sold. This is because the oldest (and potentially cheapest) inventory is assumed to be sold first, leaving the newer (and potentially more expensive) inventory in ending inventory.

Which of the Following Inventory Costing Methods Yields the Lowest