The matching of revenue with inventory costs is best achieved with the FIFO method.

Question

Quizplus · Accepted Answer

The matching of revenue with inventory costs is best achieved with the LIFO (Last In, First Out) method, as it matches the most recent costs with current revenues, which can provide a better reflection of current economic conditions. FIFO (First In, First Out) assumes the oldest inventory items are sold first, which may not accurately reflect the cost of goods sold against current revenues.

The Matching of Revenue with Inventory Costs Is Best Achieved