what-is-the-main-characteristic-of-the-fifo-method-in-inventory-costing

Question

What is the main characteristic of the FIFO method in inventory costing?

Accepted Answer

It uses the cost of the oldest inventory for cost of goods sold.

Answer

It uses the cost of the inventory purchased at the highest price.

Answer

It averages the cost of all inventory for cost of goods sold.

Answer

It uses the cost of the newest inventory for cost of goods sold.