A method of valuing inventory based on the assumption that the oldest goods will be sold first is called the:

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The FIFO (first-in, first-out) method assumes that the oldest goods are sold first, which means that the cost of goods sold includes the cost of the oldest inventory items. As a result, the value of ending inventory is based on the cost of the most recent purchases. This method is best suited for businesses that sell perishable goods or products that have a high turnover rate, as it ensures that inventory is sold before it becomes obsolete or outdated.

A Method of Valuing Inventory Based on the Assumption That