Under which method are the most recent costs included in cost of goods sold
A)LIFO
B)FIFO
C)Average
D)Specific identification

Question

Quizplus · Accepted Answer

Under LIFO (Last In, First Out) method, the most recent costs are included in Cost of Goods Sold (COGS) as these are assumed to be sold first. This results in older inventory being reported on the balance sheet at older, lower costs, and newer inventory being reported on the balance sheet at newer, higher costs.

Under Which Method Are the Most Recent Costs Included in Cost