The Use of the FIFO Cost Flow Assumption

question 83

Multiple Choice

The use of the FIFO cost flow assumption:

• A)means that the oldest inventory is considered to be the first sold.
• B)ensures that the ending inventory contains the oldest inventory costs.
• C)requires that a periodic inventory system be used.
• D)results in the best matching of costs to the physical flow of goods.

---

Definitions:

Concept

An abstract idea or a mental symbol that represents a class or category of objects, events, or phenomena.

Solution Strategy

An approach or plan designed to solve a particular problem or to achieve a specific goal.

Means-end Analysis

A problem-solving strategy that involves breaking down the problem into smaller parts and achieving the desired goal through a series of steps.

Subgoals

Intermediate goals set as part of a strategy to achieve a larger, primary goal, making complex tasks more manageable by breaking them down.