Which inventory costing method assumes that inventory costs flow out in the opposite order from which the goods were purchased?
A)FIFO
B)LIFO
C)Weighted average
D)Specific identification

Question

Quizplus · Accepted Answer

Last-in,first-out (LIFO)assumes that the inventory costs flow out in the opposite of the order the goods are received.Or,in other words,LIFO assumes last goods purchased (last in)are the costs of the first goods sold (first out).

Which Inventory Costing Method Assumes That Inventory Costs Flow Out