Madlock Company, Which Started Business at the Beginning of 2013

question 131

Multiple Choice

Madlock Company, which started business at the beginning of 2013, selected the FIFO method for its inventory costing. In order to maximize profits for 2013 under this method, purchase prices must be

• A)increasing.
• B)decreasing.
• C)stable.
• D)fluctuating up and down at the same amount consistently throughout the year.