Which Statement Best Explains the FIFO Cost Flow Assumption

Multiple Choice

Which statement best explains the FIFO cost flow assumption?

A) A method that uses the most recent costs in the calculation of cost of sales.
B) A method that uses the cost of goods available for sale divided by the number of units available for sale.
C) A method that assigns costs to inventories and cost of sales based on actual costs of each item.
D) A method that uses the oldest costs in the calculation of cost of sales.