Which statement is correct about cost allocation methods under GAAP?
A)LIFO method expenses the oldest costs first.
B)LIFO method has the most recent costs on the balance sheet.
C)LIFO method has the most recent costs in the income statement.
D)LIFO is an acceptable cost allocation method.

Question

Quizplus · Accepted Answer

Under the LIFO (Last In, First Out) method, the most recent costs are expensed first, meaning they appear in the income statement.

Which Statement Is Correct About Cost Allocation Methods Under GAAP