Which of the Following Statements Regarding FIFO Is Incorrect

question 54

Multiple Choice

Which of the following statements regarding FIFO is incorrect?

• A) Ending inventory is based on the costs of the most recent purchases.
• B) FIFO is consistent with the physical movement of inventory for most companies.
• C) The first units to come in are assumed to be the first units sold.
• D) FIFO is a specific identification costing method because companies sell their oldest inventory first.

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