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Which cost flow method results in the highest cost of goods sold for the income statement?

April 26, 2017Business COST Finance flow Highest income method results sold

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Which cost flow method results in the highest cost of goods sold for the income statement?

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The classic answer if LIFO. That assumes the most recent purchases were more expensive, thus the higher cost. In the real world sometimes prices go down and this would not be true. In the real world the vast majority lof companies use average costs for many reasons.