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.
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Quizplus · Accepted Answer

This statement is true for the First-In, First-Out (FIFO) method of inventory valuation. It assumes that the first units received or produced are the first ones sold, and their costs are matched against revenue in determining cost of goods sold.

Under the FIFO Method, the Costs of the Earliest Units