if-a-company-uses-the-fifo-method-in-a-period-of-rising-prices-how-will-this-aff

Question

If a company uses the FIFO method in a period of rising prices, how will this affect the cost of goods sold compared to the LIFO method?

Accepted Answer

COGS will be lower under FIFO.

Answer

COGS will be unpredictable under FIFO.

Answer

COGS will be higher under FIFO.

Answer

COGS will be the same under both methods.