The LIFO Method of Inventory Valuation Bases the Cost of Goods

question 141

Multiple Choice

The LIFO method of inventory valuation bases the cost of goods sold on the cost of

• A) merchandise that has been held in inventory for the longest period of time.
• B) most recent merchandise purchased by the firm.
• C) actual units customers purchased.
• D) merchandise the firm acquired at the lowest cost.

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