The use of the FIFO method of inventory valuation results in a matching of current inventory costs against current sales revenue.

Name: The use of the FIFO method of inventory valuation results in a matching of current inventory costs against current sales revenue.
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Question

Quizplus · Accepted Answer

The FIFO (First-In, First-Out) method of inventory valuation results in the oldest inventory costs being matched against current sales revenue, not the current inventory costs.

The Use of the FIFO Method of Inventory Valuation Results