Which of the following method is based on the assumption that the costliest materials are issued first and inventory is valued at the lowest possible price?

Q. Which of the following method is based on the assumption that the costliest materials are issued first and inventory is valued at the lowest possible price?

A.            FIFO method

B.            UFO method

C.            Highest-in-first-out method

D.            Weighted average method

Answer: Highest-in-first-out method