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Which inventory costing method would a company that wishes to maximize profits in a period of rising prices use?

<p><em><strong>a. FIFO.</strong></em></p> <p><em><strong>b. Dollar-value LIFO.</strong></em></p> <p><em><strong>c. Weighted average.</strong></em></p> <p><em><strong>d. Moving average.</strong></em></p>

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Question added by Deleted user
Date Posted: 2014/10/18
Mohamed Ibrahim Soliman
by Mohamed Ibrahim Soliman , Financial Controller, acting CFO , Sinad Holding Co

A is correct

Amin Baloch
by Amin Baloch , Finance & Operation Coordinator at Abu Dhabi Intl Airport , Enova Facilities Management llc

Fifo is Correct answer. In the of rising price inventories bought earlier would be less costly than the current price so give higher GP hence maximize Profit.

Donny David Chandy
by Donny David Chandy , Operations Manager , Magus International

FIFO would be the best option

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