LIFO doesn't always match the physical flow of goods but still can be used to calculate the flow of costs.

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Quizplus · Accepted Answer

LIFO (Last-In, First-Out) assumes that the last items added to a company's inventory are the first ones sold, which may not match the physical flow of goods. However, LIFO can still be used to calculate the flow of costs by assuming that the cost of the most recently acquired goods are the first ones to be expensed.

LIFO Doesn't Always Match the Physical Flow of Goods but Still