In a period of falling prices, the FIFO inventory method

CFA® Level 1: CFA® Level 1

Prev Question Next Question

Question

In a period of falling prices, the FIFO inventory method

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

B

The first-in-first-out (FIFO) method is based on the assumption that the costs of the first items acquired should be assigned to the first items sold, therefore ending inventory on hand is based on the most recent prices.