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Which method would yield the highest gross profit

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Question - Inventory valuation methods determine the cost of goods sold and the ending inventory balance reported by companies. Under U.S. GAAP, companies may elect to use FIFO, LIFO, or Weighted Average.

1) If inventory purchase costs are increasing, which method would yield the highest gross profit? Why?

2) Which method comes closest to matching current costs and revenues? Why?

Reference no: EM131622338

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