In a period of falling prices,the inventory costing method that assigns a value to inventory that approximates current cost is
A)LIFO.
B)FIFO.
C)Weighted average.
D)Specific identification.

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) assumes that the oldest inventory items are sold first, so the ending inventory is valued at the most recent costs, which approximates current cost in a period of falling prices.

In a Period of Falling Prices,the Inventory Costing Method That