Which of the Following Statements Regarding Inventories Is Correct

Multiple Choice

Which of the following statements regarding inventories is correct?

A) FIFO assumes that the costs of the earliest goods acquired are the last to be sold.
B) FIFO seldom coincides with the actual physical flow of inventory.
C) Under FIFO, the ending inventory is based on the latest units purchased.
D) It is generally good business management to sell the most recently acquired goods first.