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Proponents of the LIFO inventory cost flow assumption argue that this costing method is superior to the alternatives because it results in better matching of revenue and expense. The recent purchase costs to the Cost of Goods Sold account results in better matching of revenue and expense.

a. True
b. False

Respuesta :

Answer: True

Explanation:

The assumption of the LIFO method is that the most recent goods which are added to the inventory of a company have been sold first.

This brings about a better matching of the cost incurred and the revenue since the most recent products added are the ones which are then sold first. Therefore, the correct option is True.

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