The LIFO inventory cost flow assumes that the cost of the newest goods purchased are:
A)assumed to be the last ones to be sold.
B)not included in cost of goods sold or ending inventory.
C)assumed to be the first ones included ending inventory.
D)assumed to be the first ones sold.

Question

Quizplus · Accepted Answer

The LIFO method assumes that the newest goods purchased (last-in)are the first ones sold (first-out).

The LIFO Inventory Cost Flow Assumes That the Cost of the Newest