Answer:
D) All of these choices are correct.
Explanation:
FIFO inventory cost method refers to first in, first out. The cost of goods sold is calculated using the oldest merchandise in stock. In other words, the oldest merchandise should be sold first. The FIFO costing method can be used in either perpetual or periodic inventory systems. It is very useful in economies with low inflation rates, since the price of goods don't a lot during the year (e.g. US economy).
