In a period of rising prices,the inventory cost allocation method that tends to result in the lowest reported net income is

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LIFO (last in, first out) assumes that the most recently acquired inventory is sold first, meaning that the cost of goods sold reflects the highest recent prices. This results in a lower reported net income, as the cost of goods sold is higher and the remaining inventory is valued at older, lower costs. In a period of rising prices, this method will result in the lowest reported income because the cost of goods sold will be high due to the high recent prices.

In a Period of Rising Prices,the Inventory Cost Allocation Method