Which costing method is based on the reasoning that the fairest determination of income occurs if the current costs are matched against current sales prices?
A)Specific identification
B)FIFO
C)Average-cost
D)LIFO

Question

Quizplus · Accepted Answer

LIFO (Last-In, First-Out) is based on the principle that the most recent costs (current costs) are matched against current sales prices, which is considered the fairest determination of income by some because it reflects the most recent economic conditions.

Which Costing Method Is Based on the Reasoning That the Fairest