The Inventory Cost Flow Assumption That Assigns the Highest Cost

question 99

True/False

The inventory cost flow assumption that assigns the highest cost to cost of goods sold in a period of rising prices is FIFO.

---

Definitions:

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product more efficiently.

Experimental Method

A research methodology that involves the manipulation of one variable to determine its effect on another variable, often with the use of control and experimental groups.

Precise Control

The ability to manage or direct with great accuracy and exactness.

Real Life

Refers to actual events, situations, or experiences as opposed to those that are fictional or hypothetical.