In a Period of Rising Prices, Use of the FIFO

question 91

Multiple Choice

In a period of rising prices, use of the FIFO rather than LIFO inventory cost flow assumption results in

• A)a lower cost of goods sold and a lower ending inventory.
• B)a lower beginning inventory and a lower ending inventory.
• C)a higher cost of goods sold.
• D)a lower cost of goods sold and a higher ending inventory.
• E)none of the above

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