Use of the FIFO cost flow assumption means that:
A)the perpetual costing system is used.
B)the ending inventory contains the oldest costs.
C)the periodic costing system is used.
D)the ending inventory contains the most recent costs.

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) assumes that the oldest inventory items are sold first, so the ending inventory consists of the most recent costs.

Use of the FIFO Cost Flow Assumption Means That