The method of inventory cost determination that best matches cost and revenues is FIFO.

Name: The method of inventory cost determination that best matches cost and revenues is FIFO.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

FIFO (first-in, first-out) matches the cost of goods sold with the oldest purchases first, which often corresponds with the lower cost of inventory. This better matches these costs with the revenues earned during the same time period.

The Method of Inventory Cost Determination That Best Matches Cost