When the FIFO Method of Inventory Valuation Is Used, Cost

question 35

Multiple Choice

When the FIFO method of inventory valuation is used, cost of goods sold is assumed to consist of the:

• A)most recently purchased units.
• B)most expensive units.
• C)least expensive units.
• D)oldest units.

---

Definitions:

Consumption Sector

The part of the economy that involves the purchase and use of goods and services by households.

Social Security

A government program that provides financial support to people who are retired, disabled, or survivors of deceased workers.

Payroll Tax

Assessments required from employers or their employees, usually expressed as a percentage of the remuneration that staff earn.

Federal Income Taxes

Taxes levied by the national government on individual and business earnings.