Which one of the following inventory cost flow assumptions will result in a higher inventory turnover ration in an inflationary economy?

Question

1- Fifo

2- Lifo

3- Weighted average

4- Specific Identification

Shabeer Ahamed Shabeer · Answer

Rashad Moursi · Answer

LIFO method its a right answer

Khan Sohal khan · Answer

agreed with Shabeer Ahamed Shabeer

Naveed Azam · Answer

LIFO. As low valued inventory will be shown in Balance Sheet so making the denominator smaller and resulting in higher figure.

Ibrar Ahmad ACA · Answer

Yes,

its LIFO

Shahbaz Hayder · Answer

LIFO is the right answer as last items will carry more cost.

Mohamed Adel · Answer

LiFo last in - first out

last (higher cost than older)