During a period of steadily rising costs, the inventory valuation method that yields the lowest reported net income is: Specific identification method

Finance Mar 24, 2021

During a period of steadily rising costs, the inventory valuation method that yields the lowest reported net income is:

1. Specific identification method.
2. Average cost method.
3. Weighted average method.
4. FIFO method.
5. LIFO method.

Expert Solution

Answer:

e ) LIFO method .

Step-by-Step explanation

LIFO (Last-In-First-Out) could be deliberated as the inventory valuation method in which it assumed that the merchandise which is purchased last has to be sold first. Moreover, it produces the lowest income reported.

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