The Inventory Cost Flow Assumption Describes the Flow of Product

question 31

Multiple Choice

The inventory cost flow assumption describes the flow of product cost:

• A)from the warehouse to the customer.
• B)from the asset (inventory)account and to the expense (cost of goods sold)account.
• C)from the revenue (sales)account and to the expense (cost of goods sold)account.
• D)from the asset (inventory)account and to the revenue (sales)account.

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Definitions:

Technological Improvements

Innovations and advancements that enhance productivity, efficiency, and product quality in various industries.

Standard Of Living

The level of wealth, comfort, material goods, and necessities available to a person, group, or country.

Worker-Hour

A unit of measure representing the amount of work accomplished by one worker in one hour.

Productive

Relating to the ability to produce a significant amount or result, especially in terms of goods or services.