Which of the Following Statements About the FIFO Cost Assumption

Multiple Choice

Which of the following statements about the FIFO cost assumption is true?

A) The same costs per unit are assigned to the ending inventory and the cost of goods sold.
B) Companies prefer to use FIFO because it lowers their tax liability.
C) In times of rising prices FIFO will produce a higher net income than moving average.
D) In time of rising prices FIFO produces an inventory cost per unit that is lower than the cost per unit of cost of goods sold.