The cost flow method that often parallels the actual physical flow of merchandise is the

A) FIFO method.
B) LIFO method.
C) average-cost method.
D) gross profit method.

Question

The cost flow method that often parallels the actual physical flow of merchandise is theA)  FIFO method.B)  LIFO method.C)  average-cost method.D)  gross profit method.

Norma Bejarano · Accepted Answer

Final Answer : A, Explanation :  FIFO (First-In-First-Out) assumes that the oldest items purchased are sold first, which closely matches the actual physical flow of merchandise in many businesses. Therefore, it is the best choice among the options given.

The cost flow method that often parallels the actual physical flow of merchandise is the

A) FIFO method.
B) LIFO method.
C) average-cost method.
D) gross profit method.

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