Which of the Following Statements Is Correct When Inventory Unit

question 114

Multiple Choice

Which of the following statements is correct when inventory unit costs are decreasing?

• A)FIFO's cost of goods sold will be the largest among the inventory costing methods.
• B)LIFO's income tax will be the lowest among the inventory costing methods.
• C)Ending inventory using the FIFO cost method will be higher than the ending inventory when the LIFO method is used.
• D)Cost of goods sold using the average cost method will be less than cost of goods sold when the LIFO method is used.

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