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

Question

Quizplus · Accepted Answer

LIFO (last-in, first-out) assigns the most recent costs to cost of goods sold, which means that the oldest costs remain in inventory. This can result in a higher cost of goods sold and lower taxable income in times of rising prices. However, LIFO may not be appropriate for all types of businesses or inventory systems.

The Inventory Method That Assigns the Most Recent Costs to Cost