Use of the FIFO cost formula means that
A)the perpetual costing system is used.
B)the ending inventory contains the oldest costs.
C)the periodic costing system is used.
D)the ending inventory contains the most recent costs.

Question

Quizplus · Accepted Answer

The FIFO (First-In, First-Out) cost formula means that the costs of the earliest goods purchased are the first to be recognized in determining cost of goods sold, leaving the costs of the most recent purchases in inventory.

Use of the FIFO Cost Formula Means That