In case of rising prices, FIFO method will provide —

CS Executive · Cost and Management Accounting · PYQS · June 2015
In case of rising prices, FIFO method will provide —
(A) Lowest value of closing stock and profit
(B) Highest value of closing stock and profit
(C) Highest value of closing stock but lowest value of profit
(D) Lowest value of closing stock but highest value of profit.

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Material Costing

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