If the ending inventory is destroyed by fire, which costing approach would you use as a basis for filing an insurance claim for the fire loss? Why? Select the most appropriate statement.
a) FIFO - The ending inventory has the highest valuation.
b) LIFO - The ending inventory has the lowest valuation.
c) Weighted Average - A balance between high and low valuations.
d) Specific Identification - Accurate valuation of each item.
