The LIFO method of inventory valuation assigns the cost of the most recent purchases to the cost of goods sold.

Name: The LIFO method of inventory valuation assigns the cost of the most recent purchases to the cost of goods sold.
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The LIFO method assumes that the most recent purchases are sold first, so those costs are matched with the cost of goods sold. This results in older, cheaper inventory being left over in the inventory account.

The LIFO Method of Inventory Valuation Assigns the Cost of the Most