If merchandise inventory is being valued at cost and the price level is decreasing, which of the

Question:

If merchandise inventory is being valued at cost and the price level is decreasing, which of the three methods of costing-FIFO, LIFO, or average cost-will yield
(a) The highest inventory cost,
(b) The lowest inventory cost,
(c) The highest gross profit, and
(d) The lowest gross profit?