Generally,which inventory costing method approximates most closely the current cost for each of the following? $\begin{array}{|c|c|c|}
\hline & \text { Ending Inventory } & \text { Cost of Goods Sold } \
\hline \text { A) } & \text { FIFO } & \text { LIFO } \
\hline \text { B) } & \text { LFO } & \text { LFO } \
\hline \text { C) } & \text { FIFO } & \text { FIFO } \
\hline \text { D) } & \text { LFO } & \text { FIFO } \
\hline
\end{array}$
A)Option A
B)Option B
C)Option C
D)Option D

Question

Quizplus · Accepted Answer

FIFO (First In, First Out) approximates the current cost in ending inventory because the most recent costs remain in inventory. LIFO (Last In, First Out) approximates the current cost in the cost of goods sold because the most recent costs are the first to be expensed.

Generally,which Inventory Costing Method Approximates Most Closely the Current Cost