The Inventory Method That Results in the Highest Net Income

question 42

Multiple Choice

The inventory method that results in the highest net income during periods of declining prices is

• A)LIFO
• B)FIFO
• C)Average
• D)Specific identification

---

Definitions:

Market Segments

Distinct groups of customers within a market who share similar needs, preferences, or characteristics, allowing businesses to target them with specific products or services.

Growth Stage

The phase in a business lifecycle where it experiences rapid revenue and customer base expansion.

Product Life Cycle

A concept that describes the stages a product goes through from its introduction to the market through its growth, maturity, and eventual decline.