Which of the Following Statements Is Correct with Respect to Inventories

question 62

Multiple Choice

Which of the following statements is correct with respect to inventories?

• A)The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold.
• B)It is generally good business management to sell the most recently acquired goods first.
• C)Under FIFO, the ending inventory is based on the latest units purchased.
• D)FIFO seldom coincides with the actual physical flow of inventory.

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