Asked by Quintin Volpe on May 08, 2024
Verified
Which of the following is not a common cost flow assumption used in costing inventory?
A) First-in first-out
B) Middle-in first-out
C) Last-in first-out
D) Average cost
Common Cost
An expense that benefits multiple cost objects and cannot be directly traced to any single product or process.
First-in First-out
An inventory valuation method where the costs of the oldest inventory items are charged to cost of goods sold first.
Average Cost
A method of calculating the cost of inventory or assets by taking the weighted average of the costs of all similar items in inventory or all assets acquired during a period.
- Discern and illustrate the typical and atypical presumptions associated with inventory valuation.
Verified Answer
Learning Objectives
- Discern and illustrate the typical and atypical presumptions associated with inventory valuation.
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