Which of the following would produce the lowest net profit in periods of falling prices if inventory levels are not decreasing?

Name: Which of the following would produce the lowest net profit in periods of falling prices if inventory levels are not decreasing?
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Question

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In periods of falling prices, FIFO (First-In, First-Out) results in the lowest net profit because it uses older, higher-cost inventory for cost of goods sold, leaving lower-cost inventory on the balance sheet.

Which of the Following Would Produce the Lowest Net Profit