Which inventory costing method assigns the cost of the most recent items purchased to cost of goods sold?
A)Specific identification
B)Weighted average cost
C)FIFO
D)LIFO

Question

Quizplus · Accepted Answer

LIFO (last-in, first-out) assigns the cost of the most recent items purchased to cost of goods sold. This means that the inventory on hand is valued using the cost of the oldest items, which can result in lower taxable income in times of rising prices. However, it may not be suitable for businesses that need to maintain a consistent level of inventory.

Which Inventory Costing Method Assigns the Cost of the Most