Which of the Following Inventory Valuation Methods Minimizes Income Tax

question 12

Multiple Choice

Which of the following inventory valuation methods minimizes income tax expense during a period of rising inventory costs?

• A) first-in, first-out
• B) last-in, first-out
• C) weighted-average
• D) specific identification

---

Definitions:

Factory Overhead

Costs associated with the production process that are not directly tied to specific units of product, such as maintenance, utilities, and salaries of indirect labor.