11) Which method produces the lowest cost of goods sold and the highest gross profit when prices are increasing? 12) In order to pay the least income tax possible in periods of rising...

11) Which method produces the lowest cost of goods sold and the highest gross profit when prices are

increasing?

12) In order to pay the least income tax possible in periods of rising inventory costs, which inventory costing method should the company use?

13) When inventory prices are rising, what is the effect on Inventory, Cost of Goods Sold, and Net Income under the FIFO method?

14) What are the benefits of using FIFO?

15) What are the benefits of using average costing?

16) When inventory prices are decreasing, what is the effect on Inventory, Cost of Goods Sold ,and Net Income under the FIFO method?

17) When inventory costs are rising, what is the income statement effect if a company uses the average cost method?