Of the three widely used inventory costing methods
(FIFO, LIFO, and average cost), the LIFO method of costing inventory assumes costs are charged based on the most recent purchases first.

Question

Of the three widely used inventory costing methods 
(FIFO, LIFO, and average cost), the LIFO method of costing inventory assumes costs are charged based on the most recent purchases first.

Quizplus · Accepted Answer

LIFO stands for "last-in, first-out", meaning the most recently purchased inventory items are assumed to be sold first, and therefore their costs are the first charged to cost of goods sold.

Of the Three Widely Used Inventory Costing Methods