external reporting

Navas 27 April 2020 at 15:51 PM

In periods of rising costs, which one of the following inventory cash flow assumptions will
result in higher cost of sales?
A) Moving average
B) Weighted average
C) Last-in, first-out
D) First-in, first-out

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FACULTY 18 May 2020 at 06:34 PM

Last-in, first-out(option C)

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harryjkevin 13 August 2026 at 06:47 PM

The correct answer is C) Last-in, first-out (LIFO), since rising inventory costs generally result in newer, higher-cost items being charged to cost of sales first. I find questions like this useful for understanding how inventory methods affect financial statements. Students working through similar accounting topics may find British Assignment Writers helpful for clarifying concepts and practising how to apply them in coursework.

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