FIFO,an inventory costing method,actually describes how to calculate the cost of:
A) goods sold.
B) goods available for sale.
C) beginning inventory.
D) purchases.

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) assumes that the first items purchased or produced are sold first. Therefore, the cost of goods sold is determined by the cost of the oldest units that were purchased or produced, and this costing method is used to calculate the cost of goods sold.

FIFO,an Inventory Costing Method,actually Describes How to Calculate the Cost