Select the one term that best fits each definition
-Using the cost of merchandise purchased first to calculate the cost of merchandise sold first.
A) first-in, first-out inventory costing method (FIFO)
B) gross profit method of estimating inventory
C) inventory record
D) last-in, first-out inventory costing method (LIFO)
E) lower of cost or market inventory costing method (LCM)
F) market value
G) stock ledger
H) stock record
I) weighted-average inventory costing method

Question

Quizplus · Accepted Answer

The first-in, first-out (FIFO) inventory costing method assumes that the cost of merchandise purchased first is the cost of merchandise sold first, aligning with the definition provided.

Select the One Term That Best Fits Each Definition