Which inventory cost flow assumption more realistically matches the current cost of inventory with current sales revenue?

Question

Quizplus · Accepted Answer

LIFO (Last In, First Out) more realistically matches the current cost of inventory with current sales revenue because it assumes that the most recently purchased items are sold first. This means the cost of goods sold reflects more recent inventory costs, which are likely closer to current market prices.

Which Inventory Cost Flow Assumption More Realistically Matches the Current