Asked by Kaelyn Jordan on Jun 14, 2024
Verified
Cost flow matches the unit sold to the unit purchased.
A) Weighted average
B) First-in, first-out (FIFO)
C) Last-in, first-out (LIFO)
D) Specific identification
Cost Flow Assumption
Refers to the method used by companies to value and manage inventory; common examples include FIFO (First In, First Out), LIFO (Last In, First Out), and average cost.
Weighted Average
A calculation that takes into account the varying degrees of importance of the numbers in a data set.
Specific Identification
An inventory costing method that tracks the exact cost of each individual item in inventory to determine cost of goods sold.
- Understand the significance and applications of various inventory costing methods (FIFO, LIFO, Weighted Average, Specific Identification).
Verified Answer
Learning Objectives
- Understand the significance and applications of various inventory costing methods (FIFO, LIFO, Weighted Average, Specific Identification).
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