The LIFO method assigns the most recent inventory cost to Cost of Goods Sold.

Name: The LIFO method assigns the most recent inventory cost to Cost of Goods Sold.
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Question

Quizplus · Accepted Answer

LIFO (Last-In, First-Out) method assumes that the most recent inventory purchased is sold first. As a result, the cost of goods sold is assigned the cost of the most recent inventory purchased. Therefore, the statement "The LIFO method assigns the most recent inventory cost to Cost of Goods Sold" is true.

The LIFO Method Assigns the Most Recent Inventory Cost to Cost