When Inventory Prices Are Rising, the FIFO Method Will Generally

question 19

Multiple Choice

When inventory prices are rising, the FIFO method will generally yield a gross margin that is:

• A)less than the weighted average method.
• B)equal to the gross margin of the weighted-average method.
• C)higher than the weighted-average method.
• D)FIFO does not generally cause a gross margin that is different from that of any other costing method.

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