Accounting for IGCSE & O level - Final Statements (Section 3 - No. 35)
What is the significance of the "first-in, first-out" (FIFO) method?
It assumes that the newest inventory is sold first.
It assigns the average cost to all goods.
It matches the cost of the first units purchased with those sold first.
It considers the cost of goods available for sale.
Explication
FIFO, inventory costing method in which the first inventory purchased are the first sold