The inventory valuation method that results in the lowest taxable income in a period of inflation is: s. LIFO method.
b. FIFO method.
c. Weighted-average cost method.
d. Specific identification method.
e. Gross profit method.

A

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

Inflation refers to a persistent rise in general price levels.

In a period of inflation, cost of inventory keep rising. So, the most recently purchased inventory would have the highest price. The LIFO method would result in a higher cost of good sold and this depresses profit and also leads to a lower taxable income

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: