Which Inventory Costing Method Results in the Highest Inventory Balance

question 92

Multiple Choice

Which inventory costing method results in the highest inventory balance during a period of rising prices?

• A)Weighted average cost
• B)FIFO
• C)LIFO
• D)Both FIFO and LIFO result in the same inventory balance

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Definitions:

Cumulative

An adjective describing quantities or changes that are added together sequentially over time.

Corporate Capital Structure

Refers to the mix of different types of securities issued by a corporation to finance its operations, typically involving a combination of debt and equity.

Simple

Easily understood or done; presenting no difficulty, often referred to in the context of simple interest or simple calculations.