When Prices Are Rising,which Method of Inventory,if Any,will Result in the Lowest

question 37

Multiple Choice

When prices are rising,which method of inventory,if any,will result in the lowest relative net cash outflow (including the effects of taxes,if any) ?

• A)LIFO
• B)FIFO
• C)Weighted average
• D)None of these;the choice of inventory methods does not affect cash flows.

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