Which inventory costing method results in the highest inventory balance during a period of rising purchase prices?

Name: Which inventory costing method results in the highest inventory balance during a period of rising purchase prices?
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) results in the highest inventory balance during a period of rising purchase prices because the older, cheaper goods are recorded as sold first, leaving the more expensive, recently purchased items in inventory.

Which Inventory Costing Method Results in the Highest Inventory Balance