Which inventory costing method results in the highest inventory balance during a period of rising prices?
A)Weighted average cost
B)LIFO
C)FIFO
D)Both FIFO and LIFO result in the same inventory balance

Question

Quizplus · Accepted Answer

During a period of rising prices, the FIFO (First In, First Out) method results in the highest inventory balance because the older, lower-cost items are recorded as sold first, leaving the newer, higher-cost items in inventory.

Which Inventory Costing Method Results in the Highest Inventory Balance