Question: Aassuming purchase costs are declining determine which statements below correctly describe what happens to cost of goods sold under FIFOLIFO and weighted average cost flow

Aassuming purchase costs are declining determine which statements below correctly describe what happens to cost of goods sold under FIFOLIFO and weighted average cost flow methods companies using LIFO will report the highest inventory on their balance sheets as compared to companies using FIFO or weighted average next weighted average cost of good soul will be between FIFONLIFO cost of goods soldnext next in a situation where prices are declining companies using LIFO will report the smallest cost of good sold next companies using LIFO will pay higher taxes and companies using FIFO assuming all else being equal next companies using FIFO will report the highest gross profit and net income la Last companies using FIFO will report the smallest cost of good sold compared to companies using FLIFO or weighted average

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