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?