Which one of the following methods for inventory valuation may be misleading when the units are identical?
A)FIFO Method
B)LIFO Method
C)Specific Identification Method
D)None

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) method assumes that the oldest units are sold first. When the units are identical, this assumption may not hold true, leading to a misleading valuation of inventory.

Which One of the Following Methods for Inventory Valuation May