During periods of rising costs,FIFO generally results in a higher ending inventory balance.

Question

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FIFO (First-In, First-Out) assumes that the first items purchased are the first items sold, meaning that the most recent purchases remain in inventory. Therefore, during periods of rising costs, the cost of the most recent purchases is higher than the cost of earlier purchases, resulting in a higher ending inventory value under FIFO.

During Periods of Rising Costs,FIFO Generally Results in a Higher