Matching
Match the following cost flow assumption to their inventory costing method:
Premises:
Cost flow matches the unit sold to the unit purchased.
Cost flow is in the reverse order in which the cost were incurred.
Cost flow is an average of the costs.
Cost flow is in the order in which the costs were incurred.
Responses:
Average Cost
Last-in, Last-out (LIFO)
Specific Identification
First-in, First-out (FIFO)
Correct Answer:
Premises:
Responses:
Cost flow matches the unit sold to the unit purchased.
Cost flow is in the reverse order in which the cost were incurred.
Cost flow is an average of the costs.
Cost flow is in the order in which the costs were incurred.
Premises:
Cost flow matches the unit sold to the unit purchased.
Cost flow is in the reverse order in which the cost were incurred.
Cost flow is an average of the costs.
Cost flow is in the order in which the costs were incurred.
Responses:
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