Which One of the Following Sets of Inventory Cost Flow

question 54

Multiple Choice

Which one of the following sets of inventory cost flow assumptions is not susceptible to profit manipulation by management?

• A)FIFO and specific identification
• B)LIFO and average cost
• C)FIFO and average cost
• D)LIFO and specific identification

---

Definitions:

Job M598

A specific production or project task within a job order costing system, identified by the code M598 for tracking its associated costs and progress.

Unit Product Cost

The total cost to produce one unit of product, including materials, labor, and overhead.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated prior to the start of the accounting period based on estimated costs and activity levels.

Job-Order Costing

An accounting method used to assign costs to specific batches or orders of goods, often used in manufacturing for custom products.