In a period of rising prices the costs allocated to ending inventory may be understated in the

A) average-cost method.
B) FIFO method.
C) gross profit method.
D) LIFO method.

Rising Prices

A scenario in which the overall price level of goods and services within an economy rises over a certain period.

Ending Inventory

Ending Inventory refers to the total value of goods available for sale at the end of an accounting period, calculated as the sum of beginning inventory plus purchases minus cost of goods sold.

LIFO Method

"Last In, First Out" an inventory costing method that assumes the most recently purchased items are sold first, affecting the cost of goods sold and ending inventory valuations.