Which of the following inventory costing methods reports most closely the current cost of inventory on the balance sheet?

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) assumes that the first units purchased are the first ones sold, so the units still in inventory are the most recently purchased and have the current cost. This results in the closest reflection of current inventory costs on the balance sheet.

Which of the Following Inventory Costing Methods Reports Most Closely