Gross profit will be the:

Question

Quizplus · Accepted Answer

Gross profit is affected by the inventory valuation method used and the direction of inventory costs. A) Under LIFO with decreasing costs, older, cheaper inventory is sold last, increasing cost of goods sold (COGS) and lowering gross profit. B) Under LIFO with increasing costs, newer, more expensive inventory is sold last, increasing COGS and lowering gross profit. C) Under FIFO with increasing costs, older, cheaper inventory is sold first, decreasing COGS and increasing gross profit. Thus, all statements are correct in their respective contexts.

Gross Profit Will Be The