The FIFO inventory method assumes that costs for the latest units purchased are the first to be charged to the cost of goods sold.

Name: The FIFO inventory method assumes that costs for the latest units purchased are the first to be charged to the cost of goods sold.
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The FIFO (First-In, First-Out) inventory method assumes that the costs of the earliest units purchased are the first to be charged to the cost of goods sold.

The FIFO Inventory Method Assumes That Costs for the Latest