An inventory valuation method that assumes the items purchased by a company last are the first items to be sold is called the perpetual valuation method.

Question

An inventory valuation method that assumes the items purchased by a company last are the first items to be sold is called the perpetual valuation method.​

Quizplus · Accepted Answer

The description refers to the Last-In, First-Out (LIFO) inventory valuation method, not the perpetual valuation method. The perpetual method is about how inventory is tracked (continuously updating inventory levels), not the order in which inventory is assumed to be sold.

An Inventory Valuation Method That Assumes the Items Purchased by a Company