The inventory method that assigns the most recent costs to cost of merchandise sold is
A) FIFO
B) LIFO
C) weighted average
D) specific identification

Question

Quizplus · Accepted Answer

LIFO assigns the most recent costs to cost of merchandise sold, meaning that the items sold are assumed to come from the most recent inventory purchases. This results in a higher cost of goods sold and lower ending inventory when costs are rising over time.

The Inventory Method That Assigns the Most Recent Costs to Cost