When the LIFO costing method is in use,the seller:
A)Must sell the most recently acquired units first.
B)Must sell the oldest unit in inventory first.
C)Assumes that the most recently acquired units are sold first.
D)Assumes that the oldest units in inventory are sold first.

Question

Quizplus · Accepted Answer

LIFO stands for "Last In First Out," which means the most recently acquired units are assumed to be sold first under this costing method. This results in the cost of goods sold being based on the latest prices, which can be helpful during times of inflation as it reduces taxable income.

When the LIFO Costing Method Is in Use,the Seller