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

Question

Quizplus · Accepted Answer

LIFO (Last In, First Out) assigns the most recent costs to cost of goods sold, which can help companies save on taxes and increase cash flow by reducing the amount of taxable income reported. However, LIFO may not accurately reflect the actual cost of inventory and is not allowed under International Financial Reporting Standards (IFRS).

The Inventory Method That Assigns the Most Recent Costs to Cost