The inventory method that assigns the most recent costs to cost of goods sold is
A) FIFO
B) LIFO
C) weighted average
D) specific identification

Question

Quizplus · Accepted Answer

LIFO assigns the most recent costs to cost of goods sold, making it the best choice for companies that want to reduce their tax liability by minimizing taxable income. However, LIFO may not accurately reflect the true cost of goods sold and may result in higher inventory carrying costs.

The Inventory Method That Assigns the Most Recent Costs to Cost