Asked by Shavon Revell on Jun 16, 2024
Verified
FIFO is the inventory costing method that follows the physical flow of the goods.
Physical Flow
The movement of physical goods through a production process or supply chain.
- Grasp the concept and application of FIFO, LIFO, and weighted average inventory costing methods.
Verified Answer
GS
Gurminder SinghJun 20, 2024
Final Answer :
True
Explanation :
FIFO stands for "first-in, first-out" and assumes that the first items purchased or produced are the first items sold or used. This results in the oldest inventory being sold first and follows the physical flow of goods.
Learning Objectives
- Grasp the concept and application of FIFO, LIFO, and weighted average inventory costing methods.