When inventory costs are increasing,the FIFO costing method will generally yield a cost of goods sold that is:

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Quizplus · Accepted Answer

When inventory costs are increasing, the FIFO (First In, First Out) costing method will generally yield a cost of goods sold that is lower than that under the LIFO (Last In, First Out) method. This is because FIFO assumes that the oldest (and typically cheaper) inventory items are sold first, while LIFO assumes that the newest (and typically more expensive) items are sold first.

When Inventory Costs Are Increasing,the FIFO Costing Method Will Generally