CIMA Fundamentals of financial accounting BA3 Question # 4 Topic 1 Discussion

CIMA Fundamentals of financial accounting BA3 Question # 4 Topic 1 Discussion

BA3 Exam Topic 1 Question 4 Discussion:
Question #: 4
Topic #: 1

In times of rising prices, the 'FIFO' method of inventory valuation, when compared to the 'Average Cost' method of inventory valuation, will usually produce:


A.

A lower profit and a lower closing inventory value


B.

A lower profit and a higher closing inventory value


C.

A higher profit and a lower closing inventory value


D.

A higher profit and a higher closing inventory value


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