An advocate of the LIFO inventory method would maintain that:
A) current costs are matched with current selling prices.
B) the lowest possible costs are always shown in the ending inventory.
C) the oldest inventory is relieved of its cost before the newer purchases.
D) the highest possible costs are always shown in the ending inventory.

Question

Quizplus · Accepted Answer

The LIFO (Last In, First Out) inventory method assumes that the last items placed in inventory are sold first, thus current costs are matched with current revenues, providing a more accurate measure of profitability during inflationary periods.

An Advocate of the LIFO Inventory Method Would Maintain That