Final answer:
FIFO typically results in the lowest COGS and highest E/I and NI during periods of rising prices, but this can reverse when prices fall.
Step-by-step explanation:
The student is asking about the impact of the First-In, First-Out (FIFO) inventory valuation method on financial metrics, specifically Earnings/Income (E/I), Cost of Goods Sold (COGS), and Net Income (NI). Considering a period of rising prices, FIFO would typically produce the lowest COGS because the oldest (and usually cheaper) inventory gets sold first. This, in turn, would lead to the highest Earnings/Income and Net Income for the period, as compared to other inventory valuation methods like Last-In, First-Out (LIFO) or Average Cost. It's important to note that these effects can be reversed during periods of falling prices.