Which inventory valuation method results in the highest ending inventory during periods of rising prices?
Practice Questions
1 question
Q1
Which inventory valuation method results in the highest ending inventory during periods of rising prices?
FIFO
LIFO
Weighted Average
Specific Identification
FIFO (First-In, First-Out) results in the highest ending inventory value during periods of rising prices because the oldest, cheaper costs are matched against current revenues.
Questions & Step-by-step Solutions
1 item
Q
Q: Which inventory valuation method results in the highest ending inventory during periods of rising prices?
Solution: FIFO (First-In, First-Out) results in the highest ending inventory value during periods of rising prices because the oldest, cheaper costs are matched against current revenues.
