Question

During inflation, the best methods to use in inventory valuation that produces the smallest amount of profit is:

A. Specific Invoice


B. LIFO


C. FIFO


D. Weighted Average



The answer is C. FIFO

Answer 1

C FIFO

Step-by-step explanation: FIFO is an acronym with full meaning of first in first out.

This method is easier to understand, it is universally accepted and trusted. It makes bookkeeping easier with less chance of errors.