During a period of steadily rising prices, which of the following inventory valuation methods is likely to result in the lowest cost of goods sold?
A) LIFO.
B) FIFO.
C) The retail method.
D) The gross profit method.

Question

Quizplus · Accepted Answer

Under FIFO (First-In, First-Out), the oldest inventory costs are used up first, which are lower in a period of rising prices, resulting in a lower cost of goods sold.

During a Period of Steadily Rising Prices, Which of the Following