Which Inventory Cost Flow Method Assigns the Cost of the Most

question 55

Multiple Choice

Which inventory cost flow method assigns the cost of the most recent items purchased to ending inventory?

• A) Specific identification
• B) Weighted average
• C) FIFO
• D) LIFO

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Definitions:

Inventory

The complete inventory of products and materials owned by a business, intended for either production or selling.

Net Working Capital

The disparity between a firm's existing assets and its immediate liabilities, showing the company's short-term fiscal stability and efficiency in operations.

Bottom-Up Approach

An investment strategy that starts with the analysis of individual stocks and then proceeds to the broader economy.

Operating Cash Flow

A financial metric that represents the cash generated by a company's regular business operations in a specific time frame.