Under the FIFO method the costs of the earliest units purchased are the first charged to cost of goods sold.

Name: Under the FIFO method the costs of the earliest units purchased are the first charged to cost of goods sold.
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

This statement accurately describes the FIFO method of inventory costing. Under FIFO, the cost of the earliest units purchased are assumed to be the first ones sold, leaving the newer, more recently purchased units to remain in inventory.

Under the FIFO Method the Costs of the Earliest Units