Which of the following statements about the use of the FIFO assumption is NOT true?
A) The FIFO assumption assigns the more recent purchase costs to the balance sheet inventory asset account.
B) The FIFO assumption is not affected by the inventory control method.
C) In periods of rising prices it produces a higher profit than LIFO.
D) The FIFO assumption produces inventory asset values that are based on older purchase costs.

Question

Quizplus · Accepted Answer

The FIFO assumption produces inventory asset values that are based on more recent purchase costs.

Which of the Following Statements About the Use of the FIFO