Cost flow is in the reverse order in which costs were incurred when using
A) weighted average
B) last-in, first-out
C) first-in, first-out
D) average cost

Question

Quizplus · Accepted Answer

Last-in, first-out (LIFO) accounting method assumes that the most recent costs incurred are the first to be allocated to cost of goods sold, meaning the cost flow is in the reverse order of the costs incurred.

Cost Flow Is in the Reverse Order in Which Costs