Which costing method assumes that the cost of the first items acquired should be assigned to the first items sold?
A)Specific identification
B)FIFO
C)Average-cost
D)LIFO

Question

Quizplus · Accepted Answer

FIFO, which stands for First-In, First-Out, assumes that the cost of the first items acquired (or produced) should be assigned to the first items sold. This method operates under the assumption that the oldest inventory items are sold before the newer inventory items.

Which Costing Method Assumes That the Cost of the First