Q: Is LIFO/FIFO a method of:

Answer: A

Explanation:

The correct answer is:

A. Inventory Evaluation ✅

👉 Explanation:

LIFO (Last In, First Out) and FIFO (First In, First Out) are inventory valuation methods.
They determine how the cost of inventory sold (COGS) and ending inventory are calculated.
- FIFO assumes the oldest inventory is sold first.
- LIFO assumes the newest inventory is sold first.
They affect reported profits and inventory values but are not related to profit ratios or financing.

💡 Key point: These methods help businesses match costs with revenues and comply with accounting standards.