The Two Inventory Cost Formulas Will Result in the Following $\quad$

Multiple Choice

The two inventory cost formulas will result in the following comparative effects on profit during a period when prices are rising:
$\quad$ FIFO $\quad$$\quad$ Average

A) Higher $\quad$$\quad$ no effect
B) Higher $\quad$$\quad$ lower
C) Lower $\quad$$\quad$ higher
D) No effect $\quad$ No effect