Asked by allison brockington on Jul 08, 2024
Verified
Under the LIFO inventory costing method, the most recent costs are assigned to ending inventory.
LIFO
Last In, First Out; an inventory valuation method where the last items placed in inventory are the first ones to be used or sold.
Ending Inventory
The total value of a business’s merchandise, raw materials, and products not yet sold at the end of an accounting period.
- Grasp the nuances and applications of first-in-first-out (FIFO), last-in-first-out (LIFO), and average cost inventory methods.
Verified Answer
AK
Abhishek kumarJul 15, 2024
Final Answer :
False
Explanation :
Under the LIFO (Last In, First Out) inventory costing method, the most recent costs are assigned to the cost of goods sold, while the older costs remain in ending inventory.
Learning Objectives
- Grasp the nuances and applications of first-in-first-out (FIFO), last-in-first-out (LIFO), and average cost inventory methods.
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