In a period of rising prices,which of the following inventory cost formulas generally results in the lowest profit figure?
A)Weighted-average
B)FIFO
C)The inventory cost formula only affects the balance sheet
D)Need more information to answer

Question

Quizplus · Accepted Answer

In a period of rising prices, the weighted-average method spreads out the cost of goods sold over all units, resulting in a higher cost of goods sold and thus a lower profit compared to FIFO, which uses older, cheaper costs.

In a Period of Rising Prices,which of the Following Inventory