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  3. Study Set
    Cornerstones of Financial Accounting Study Set 2
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    Exam 6: Cost of Goods Sold and Inventory
  5. Question
    Which Inventory Costing Method Results in the Lowest Income Tax
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Which Inventory Costing Method Results in the Lowest Income Tax

Question 159

Question 159

Multiple Choice

Which inventory costing method results in the lowest income tax expense during a period of decreasing purchase prices?


A) FIFO
B) LIFO
C) Specific identification
D) Weighted average cost

Correct Answer:

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