In a period of declining prices,which of the following inventory cost formula generally results in the lowest statement of financial position figure for inventory?
A)Weighted-average
B)FIFO
C)Statement of financial position figure is the same under both FIFO and weighted-average cost
D)Need more information to answer

Question

Quizplus · Accepted Answer

In a period of declining prices, the weighted-average method will generally result in a lower ending inventory value on the statement of financial position compared to FIFO, as it averages out the costs, including the lower recent prices.

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