An advantage of FIFO is that it assigns the most recent costs to cost of goods sold, and does a better job of matching current costs with revenues on the income statement.

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FIFO (First-In, First-Out) assigns the oldest costs to cost of goods sold, not the most recent costs, which may not match current costs with revenues as effectively as other methods like LIFO (Last-In, First-Out).

An Advantage of FIFO Is That It Assigns the Most