Which inventory method generally best follows the matching principle?
A)Average-cost
B)LIFO
C)Whichever method is used for tax purposes
D)FIFO

Question

Quizplus · Accepted Answer

The Last-In, First-Out (LIFO) method generally best follows the matching principle because it matches the most recent costs of goods sold against current revenues, which can provide a more accurate measure of current profitability.

Which Inventory Method Generally Best Follows the Matching Principle