When comparing the FIFO with the weighted-average method, the FIFO method provides current cost information.

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Quizplus · Accepted Answer

FIFO method assumes that the first items purchased or produced are the first ones sold or used, this provides current cost information as it reflects the most recent cost of the goods sold. On the other hand, the weighted-average method blends all the costs incurred on an item in inventory over a period of time to calculate the average unit cost, providing an average cost that may not reflect current market conditions.

When Comparing the FIFO with the Weighted-Average Method, the FIFO