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Basic Question 16 of 16

For a company to increase its assets during a deflationary period, it needs to follow the:

A. FIFO method.
B. LIFO method.
C. Average cost of inventory method.

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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

calculate and explain how inflation and deflation of inventory costs affect the financial statements and ratios of companies that use different inventory valuation methods

CFA® 2025 Level I Curriculum, Volume 2, Module 6.