Cost Flow Is in the Reverse Order in Which Costs

question 178

Multiple Choice

Cost flow is in the reverse order in which costs were incurred when using

• A) weighted average
• B) last-in, first-out
• C) first-in, first-out
• D) average cost

---

Definitions:

Promisor

A person who makes a promise.

Promisee

The person to whom a promise is made or who stands to benefit from the fulfillment of the promise.

Express Contract

An express contract is a legally binding agreement where the terms are explicitly stated by the parties involved either orally or in writing.

Implied Contract

An agreement created by actions of the parties involved, rather than written or spoken words, which has the same legal force as a written contract.