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In case of rising prices (inflation) FIFO method will

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Costing
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In case of rising prices (inflation), FIFO method will:

Answer & Solution
Correct Answer: Option B
In case of rising prices (inflation), FIFO method will provide highest value of closing stock and profit. The FIFO method is the standard inventory method for most companies. FIFO gives a lower-cost inventory because of inflation; lower-cost items are usually older.
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