Which of the following cost flow assumptions will report ending inventory closest to current cost?
A)LIFO method
B)FIFO method
C)weighted-average method
D)acquisition cost
E)specific identification method

Question

Quizplus · Accepted Answer

The FIFO method assumes that the first items purchased are also the first sold, leaving the most recent purchases in ending inventory. This results in ending inventory being valued closest to current cost.

Which of the Following Cost Flow Assumptions Will Report Ending