In periods of rising prices, which inventory method yields the highest gross profit?
In periods of rising prices, which inventory method yields the highest gross profit?
بڑھتی ہوئی قیمتوں کے ادوار میں، کون سا انوینٹری طریقہ سب سے زیادہ مجموعی منافع دیتا ہے؟
Explanation
In periods of rising prices, FIFO (First-In, First-Out) yields the highest gross profit because:
- Older, lower-cost inventory is sold first
- Cost of goods sold is lower
- Gross profit is higher