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swetha chahal
on Oct 28, 2024

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Which of the following statements is incorrect when inventory unit costs are increasing?

A) LIFO's cost of goods sold will be the largest among the inventory costing methods.
B) LIFO's income tax will be the lowest among the inventory costing methods.
C) Ending inventory using the average cost method will be larger than the ending inventory when the LIFO method is used.
D) Cost of goods sold using the average cost method will be less than cost of goods sold when the FIFO method is used.

Inventory Unit Costs

The costs associated with obtaining or producing a single unit of inventory, encompassing material, labor, and overhead.

Average Cost Method

An inventory valuation method that assigns the average cost of all similar items in the inventory until they are sold.

LIFO

LIFO, or Last In, First Out, is an inventory valuation method where the last items to be added to inventory are assumed to be the first ones sold.

  • Scrutinize the repercussions of employing different inventory costing strategies on financial disclosures in assorted cost scenarios.
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Kush Amen Hamilton-NedNov 02, 2024
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