Which cost flow assumption assumes that the goods purchased first are sold first?

Name: Which cost flow assumption assumes that the goods purchased first are sold first?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

FIFO, or first-in, first-out, assumes that the first goods purchased are the first goods sold. This means that the inventory on hand and cost of goods sold will reflect the most recent purchases, which can be beneficial in times of inflation when older, lower cost inventory is sold.

Which Cost Flow Assumption Assumes That the Goods Purchased First