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  • When prices are rising, cost of production by FIFO method...
Multiple choice

When prices are rising, cost of production by FIFO method will be

  1. low

  2. high

  3. moderate

  4. nil

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When prices are rising, goods are recorded at previous prices i.e. lower prices. Thus, they show lower value of cost of production.

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