Reading 21: Question 2 (Profit margin in Temporal vs. Current)
Profit margin is highest in an inflationary environment using?
A. FIFO & Temperoral
C. FIFO & Current
Looking at the answer, I think the book (C) is wrong. Temporal converts GOGS at historical (lower in inflationary), which gives a higher profit margin wihle current uses average (higher in inflationary).
p. 243 also shows margin higher under temporal.
Am I doing it wrong?