Which of the Following Statements Is False Regarding an Assumption

question 164

Multiple Choice

Which of the following statements is false regarding an assumption of inventory cost flow?

• A) The cost flow assumption need not correspond to the actual physical flow of goods.
• B) The assumption selected may be changed each accounting period.
• C) The FIFO assumption uses the earliest acquired prices to cost the items sold during a period.
• D) The LIFO assumption uses the earliest acquired prices to cost the items on hand at the end of an accounting period.

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Definitions:

Massed Practice

A learning strategy that involves intensive, uninterrupted study or practice sessions.

Distributed Practice

A learning strategy that involves spreading study sessions and practice over time, shown to improve retention and acquisition of knowledge.

Interference

A cognitive phenomenon where previously learned information hinders the ability to learn new information or vice versa.

Group Practice

A medical or therapeutic practice wherein several practitioners work together in a shared facility, often offering a range of services.