The accounting principle that requires that the cost flow assumption be consistent with the physical movement of goods is

A) called the expense recognition principle.
B) called the consistency principle.
C) nonexistent; that is there is no accounting requirement.
D) called the physical flow assumption.

Consistency Principle

An accounting standard that mandates entities to apply the same accounting methods and practices from period to period.

Expense Recognition Principle

This principle dictates that expenses should be recognized in the accounting period when they are incurred, not necessarily when they are paid, matching expenses to the revenues they help generate.

Physical Flow Assumption

An accounting method that tracks the physical movement of goods in inventory, often used to calculate cost of goods sold or ending inventory.