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Use of the FIFO inventory valuation method

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Use of the FIFO inventory valuation method True or false 1. If the unit price of inventory is increasing during a period, a company using the average-cost inventory method will show less gross profit for the period, than if it had used the FIFO inventory method. 2. If a company has no beginning inventory and the unit price of inventory is increasing during a period, the cost of goods available for sale during the period will be the same under the average-cost and FIFO inventory methods. 3. Use of the FIFO inventory valuation method enables a company to report higher net income when in a period of falling prices. 4. If a company changes its inventory valuation method, the effect of the change on net income should be disclosed in the financial statements. 5. In a period of rising prices, if a company uses the FIFO cost flow assumption, income tax expense will be lower than if they used average-costing. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

Use of the FIFO inventory valuation method

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