Inventory Valuation

In FIFO, the cost of the oldest inventory items is assigned to the cost of goods sold first.

• True

• False

LIFO is commonly used in the United Kingdom for inventory valuation. True or False?

• True

• False

AVCO stands for Average Cost Method in inventory valuation. True or False?

• True

• False

Under the LIFO method, the most recently acquired items are assigned to the cost of goods sold first. True or False?

• True

• False

FIFO results in lower tax payments during periods of rising prices. True or False?

• True

• False

The AVCO method uses a weighted average to determine the cost of inventory. True or False?

• True

• False

In periods of falling prices, LIFO will typically result in higher ending inventory values than FIFO. True or False?

• True

• False