Which inventory valuation method assumes that the latest inventory items purchased are sold first?

Explanation

Core Concept: LIFO assumes the most recently acquired goods are sold first, leaving older inventory costs in ending inventory. Context/Distractors: FIFO assumes oldest units are sold first. Weighted average calculates an average cost per unit across all inventory available for sale. Exam Tip/Key Fact: During periods of rising prices (inflation), LIFO results in higher Cost of Goods Sold (COGS) and lower net income.