The inventory costing method that considers the ending inventory to be composed of units of the merchandise acquired earliest is called:
A) first-in, first-out.
B) highest-in, first-out.
C) lowest-in, first-out.
D) last-in, first-out.

Question

Quizplus · Accepted Answer

The last-in, first-out (LIFO) method assumes that the last items placed in inventory are sold first, so the ending inventory consists of the oldest items.

The Inventory Costing Method That Considers the Ending Inventory to Be