Which inventory method generally results in costs allocated to ending inventory that will approximate their current cost?
A)LIFO
B)FIFO
C)Average cost method
D)Whichever method that produces the highest ending inventory figure

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) results in ending inventory costs that approximate current costs because the oldest costs are assigned to cost of goods sold, leaving the most recent costs in ending inventory.

Which Inventory Method Generally Results in Costs Allocated to Ending