FIFO is a method of inventory valuation based on the artificial assumption that the first goods bought are the first sold. Closing inventory is therefore assumed to be that purchased most recently.

Question

Quizplus · Accepted Answer

FIFO stands for First-In, First-Out, meaning that the oldest inventory items are recorded as sold first. Therefore, the remaining inventory is comprised of the most recently purchased items.

FIFO Is a Method of Inventory Valuation Based on the Artificial