FIFO assumes all but one of the following:
A)Sell the old inventory first
B)Recent cost assigned to inventory not sold
C)Sell the new inventory first
D)Cost flow tends to follow physical flow
E)None of these

Question

Quizplus · Accepted Answer

FIFO assumes that the new inventory is sold first, and the cost assigned to inventory not sold is from the older inventory. Therefore, option C is the correct assumption, while options A, B, D, and E are either incorrect or not directly related to the FIFO assumption.

FIFO Assumes All but One of the Following