IBM Tivoli Monitoring V6.3 Implementation — Question 62

What costing method should be used if the receipt cost of items that are the newest in stock is required?

Answer options

• A. LIFO
• B. FIFO
• C. Average
• D. Standard

Correct answer: A

Explanation

The LIFO (Last In, First Out) method is suitable for determining the cost of the newest items in inventory, as it assumes that the latest items purchased are sold first. FIFO (First In, First Out) would focus on the oldest items, while Average and Standard costing methods do not specifically address the timing of items sold.