Under which of the following inventory costing methods is the cost of goods sold based on the cost of the most recent purchases?

Name: Under which of the following inventory costing methods is the cost of goods sold based on the cost of the most recent purchases?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The Last-in, First-out (LIFO) method assumes that the most recent items added to the inventory are sold first, so the cost of goods sold is based on the cost of the most recent purchases.

Under Which of the Following Inventory Costing Methods Is the Cost