Which inventory costing method most closely approximates current cost for ending inventory?
A)Average
B)FIFO
C)LIFO
D)Specific identification

Name: Which inventory costing method most closely approximates current cost for ending inventory? A)Average B)FIFO C)LIFO D)Specific identification
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Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) assumes that the oldest inventory items are sold first, so the ending inventory consists of the most recently purchased items, closely approximating current cost.

Which Inventory Costing Method Most Closely Approximates Current Cost for Ending