The FIFO method of costing inventory is based on the assumption that costs should be charged against revenues in the reverse order in which they were incurred.

Name: The FIFO method of costing inventory is based on the assumption that costs should be charged against revenues in the reverse order in which they were incurred.
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Question

Quizplus · Accepted Answer

The FIFO (First-In, First-Out) method assumes that the oldest inventory costs are charged against revenues first, not in reverse order.

The FIFO Method of Costing Inventory Is Based on the Assumption