Which of the following inventory costing methods assumes that the cost, at the earliest purchase of goods, is the first to be recognized as the cost of the goods sold?

Free on board
FOB shipping point
First in, first out
Last in, first out

First in, first out

Rationale: The first in, first out costing method assumes that the cost, at the earliest purchase of goods, is the first to be recognized as the cost of the goods sold.

Health Professions

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