5 when purchase costs regularly rise, the inventory costing method that yields the highest reported net…

5 when purchase costs regularly rise, the inventory costing method that yields the highest reported net income is multiple choice fifo method average cost method. weighted - average method. lifo method specific identification method.

5 when purchase costs regularly rise, the inventory costing method that yields the highest reported net income is multiple choice fifo method average cost method. weighted - average method. lifo method specific identification method.

Answer

Brief Explanations:

When purchase costs are rising, FIFO (First - In, First - Out) assumes that the earliest (and usually lower - cost) items are sold first. This results in lower cost of goods sold (COGS) and higher reported net income compared to other methods like LIFO (which assumes the last - in items are sold first and would have higher COGS in a rising cost environment). The average cost and weighted - average methods smooth out costs and don't yield the highest net income as FIFO does in a rising cost situation. Specific identification method is used when each item can be individually identified and doesn't have a consistent impact on net income like FIFO in rising cost scenarios.

Answer:

A. FIFO method