Question

If costs had been declining instead of​ rising, which inventory costing method would have produced the highest cost of goods​ sold? If prices had been declining instead of​ rising, the ▼ FIFO LIFO weighted-average method would have produced the highest cost of goods sold.

Answer 1

FIFO would have produced the highest cost of goods sold. the If costs had been declining instead of​ rising, which inventory costing method would have produced the highest cost of goods​ sold?

Step-by-step explanation:

If prices had been declining instead of​ rising, the FIFO while

LIFO Costing Methods is best used

When prices are rising, you prefer LIFO because it gives you the highest cost of goods sold and the lowest taxable income. In rising markets, FIFO yields the lowest cost of goods sold and the highest taxable income.