Use of the FIFO cost flow assumption means that
A) Ending inventory items are the ones most recently purchased
B) Goods are removed from inventory at their average cost
C) The periodic costing system is used
D) The beginning inventory contains the oldest costs
E) All of these are correct answers.

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.

Use of the FIFO Cost Flow Assumption Means That