FIFO

True or False? The FIFO method assumes that the first items purchased are the first items sold.

• True

• False

If you wanted to maximize tax payments if prices were declining, which inventory method would you use?

• LIFO

• FIFO

• Inflation

• Deflation

Is the following statement correct? When calculating FIFO, you must determine the cost of your oldest inventory and multiply that cost by the amount of inventory sold.

• Yes

• No

True or False? Grocery stores use the FIFO inventory valuation method.

• True

• False

What's the benefit of using FIFO when inventory costs are rising?

• Higher Income Taxes

• Lower Income Taxes

• Higher Net Income

• Lower Ending Inventory

A company has two items that cost $15 each. The company buys two more for $15 each. They use FIFO and sell one. Which of the following is the cost of goods sold?

• $23

• $10

• $15

• none of the above

Which of the following helps with the physical flow for most companies?

• LIFO

• Weighted Average

• Specific Identification

• FIFO