CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Under which cost flow assumption is the ending inventory composed of the most recently purchased merchandise?
A. FIFO
B. LIFO
C. Average Cost
Explanation: Under the FIFO (First-In, First-Out) cost flow assumption, the inventory on hand is considered to be composed of the most recent items purchased.

User Contributed Comments 3

User Comment
vina first in first out so most recent item goes out first...
johnsk vina: it's the opposite!
zax4 The ? is talking about the ending inventory not how the inventory is sold.
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