A widely used method of allocating merchandise cost that assumes the first merchandise bought is the first merchandise sold is called the first-in, first-out method.

Question

Quizplus · Accepted Answer

The statement is true. The first-in, first-out (FIFO) method assumes that the first merchandise bought is the first merchandise sold, and allocates the cost of merchandise accordingly.

A Widely Used Method of Allocating Merchandise Cost That Assumes