When LIFO is used with the periodic inventory system, cost of goods sold is assigned costs from the most recent purchases at the point of each sale, rather than from the most recent purchases for the period. True/False

FALSE

Explanation: The LIFO( Last-in First-out) principle in a periodic inventory system as the name implies, means that prices of goods sold is assigned cost starting from the most recent purchases for that period. In simple terms, if a good is to be sold, such good is sold at the price of the most recent purchase in the inventory until the unit of goods in that inventory is exhausted, then goods sold after that are assigned the price of the next most recent purchase in the inventory until the unit of goods in that inventory is also exhausted and the trend goes thus.