In a period of rising prices, which of the following inventory cost formulas generally results in the lowest net income figure?

A) average cost
B) FIFO
C) The inventory cost formula only affects the statement of financial position.
D) Need more information to answer.

Rising Prices

This term indicates an economic situation where the general level of prices of goods and services in an economy increases over a period.

Net Income

The amount of money a company earns after all expenses and taxes have been subtracted from its total revenue.

Inventory Cost

The total cost incurred to procure, produce, and store inventory, including purchase price, production, and handling costs.