FIFO,an inventory costing method,actually describes how to calculate the:
A)cost of goods sold.
B)cost of goods available for sale.
C)beginning inventory.
D)purchases.

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).

FIFO,an Inventory Costing Method,actually Describes How to Calculate The