Inventory costing method charges the most recent costs incurred against revenue?

The inventory costing method that charges the most recent costs incurred against revenue is known as the Last-In, First-Out (LIFO) method. Under LIFO, it is assumed that the last items added to inventory are the first ones sold, resulting in higher cost of goods sold during periods of rising prices. This can lead to lower taxable income and reduced tax liability, but it may also result in lower reported profits. LIFO is less commonly used under International Financial Reporting Standards (IFRS), which do not permit its use.