Which of the Following Statements Regarding Inventories Is Correct

question 32

Multiple Choice

Which of the following statements regarding inventories is correct?

• A) FIFO assumes that the costs of the earliest goods acquired are the last to be sold.
• B) FIFO seldom coincides with the actual physical flow of inventory.
• C) Under FIFO, the ending inventory is based on the latest units purchased.
• D) It is generally good business management to sell the most recently acquired goods first.

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