Which of the following statements about the use of the LIFO assumption is TRUE?
A) The LIFO assumption assigns older costs to the cost of goods sold expense account.
B) The LIFO assumption produces inventory asset values that are close to current costs.
C) The LIFO assumption produces a lower inventory asset value and the highest cost of goods sold.
D) None of the above

Question

Quizplus · Accepted Answer

The LIFO assumption assigns the most recent costs to the cost of goods sold expense account and produces a lower inventory asset value (since older, lower costs are left in inventory) and the highest cost of goods sold (since recent, higher costs are assigned to cost of goods sold).

Which of the Following Statements About the Use of the LIFO