Question

lifo uses the unit costs for cost of goods sold on the income statement and the unit costs for inventory on the balance sheet. multiple choice question. newest; oldest newest; newest oldest; oldest oldest; newest

Answer 1

For the cost of products sold on the income statement, LIFO uses the newest unit costs, and the oldest (A)

There are numerous ways for valuing inventory, including LIFO, FIFO, weighted average, and specific identification methods. The specific identification method is utilized by companies that create high-end items, and FIFO is the strategy that is most frequently used.

American businesses typically use the last-in, first-out (LIFO) cost flow assumption to move costs from inventory to the cost of goods sold.

The first expenses to be removed from inventory and compared to the sales revenues displayed on the income statement under LIFO are the most recent product costs (or manufacturing costs). This suggests that the early costs are still there in the inventory.

To know more about the LIFO method, refer to this link:

brainly.com/question/15344569

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