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.

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Isabella

Business

2 March, 16:30

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.

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Rebecca · 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?

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.