FIFO uses "old" inventory costs against revenue.

Name: FIFO uses "old" inventory costs against revenue.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

FIFO (first-in, first-out) method of inventory valuation assumes that the oldest goods purchased are sold first. Therefore, the cost of goods sold reflects the costs of the oldest inventory items, while the ending inventory reflects the costs of the most recently purchased items. This means that FIFO uses "old" inventory costs against revenue.

FIFO Uses "Old" Inventory Costs Against Revenue