Which inventory costing method uses the oldest cost for cost of goods sold on the income statement and the newest cost for inventory on the balance sheet?
A)LIFO
B)Specific identification
C)FIFO
D)Weighted average

Question

Quizplus · Accepted Answer

First-in,first-out (FIFO)assumes that the inventory costs flow out in the order the goods are received.Or,in other words,FIFO assumes that the costs of the first goods purchased (first in)are the costs of the first goods sold (first out).

Which Inventory Costing Method Uses the Oldest Cost for Cost