Under which method of inventory cost flows is the cost flow assumed to be in the reverse order in which the expenditures were made?
A)Average cost
B)Last-in,first-out
C)First-in,first-out
D)Last-in,last-out

Question

Quizplus · Accepted Answer

The Last-in, first-out (LIFO) method assumes that the most recently purchased or produced items are the first to be used or sold, which is the reverse order of the expenditures.

Under Which Method of Inventory Cost Flows Is the Cost