Which of the following statements about the use of the LIFO assumption is true?
A) The LIFO assumption assigns older costs to the cost of goods sold expense account.
B) The LIFO assumption produces inventory asset values that are close to current costs.
C) The LIFO assumption produces a lower inventory asset value and the highest cost of goods sold.
D) None of the answers provided.

Question

Quizplus · Accepted Answer

The LIFO assumption results in assigning newer, higher costs to inventory and older, lower costs to cost of goods sold, which leads to a lower inventory asset value and the highest cost of goods sold.

Which of the Following Statements About the Use of the LIFO