Which costing method is used based on the reasoning that the fairest determination of income occurs if the current costs are matched against current sales prices?
A)Specific identification
B)FIFO
C)Average-cost
D)LIFO

Question

Quizplus · Accepted Answer

LIFO (Last-In, First-Out) is used based on the reasoning that the fairest determination of income occurs if the current costs are matched against current sales prices, as it assumes that the most recently acquired items are sold first, thus matching current costs with current revenues.

Which Costing Method Is Used Based on the Reasoning That