An Assumption About Cost Flow Is Used

question 186

Multiple Choice

An assumption about cost flow is used

• A)because it is required by the income tax regulation.
• B)even when there is no change in the purchase price of inventory.
• C)only when the flow of goods cannot be determined.
• D)because prices usually change, and tracking which units have been sold is difficult.

---

Definitions:

Countervailing Power

Countervailing power refers to the capability of a group or organization to counterbalance or neutralize the influence and power of another group.

Power Holder

An individual or entity that possesses control or authority over others within an organizational or societal context.

Exchange Relationship

A connection between people or organizations characterized by the mutual giving and receiving of resources or services.

Machiavellian Values

Traits characterized by cunning, stratagem, and a pragmatic, often unscrupulous approach to achieving personal or organizational goals.