In a period of rising prices, which inventory valuation method would a company likely choose if they want to have the highest possible balance of inventory on the balance sheet?

Question

Quizplus · Accepted Answer

In a period of rising prices, FIFO (First-In, First-Out) results in the oldest, and typically cheaper, inventory costs being used up first, leaving the more expensive, recent inventory costs on the balance sheet, thus increasing the inventory balance.

In a Period of Rising Prices, Which Inventory Valuation Method