Question

Which cost assumption method assumes that unit sold must be those most recently acquired? *

0/1

FIFO

 

LIFO

WAC

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Answer 1

Answer:

FIFO is considered to be the more transparent and trusted method of calculating cost of goods sold, over LIFO. ... LIFO allows a business to use the most recent inventory costs first. These costs are typically higher than what it cost previously to produce or acquire older inventory. As such, profits are lower.

Explanation:

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