Match Each Description to the Appropriate Cost Flow Assumption (A-C)

question 66

Multiple Choice

Match each description to the appropriate cost flow assumption (a-c) .
-Cost of the latest purchases are assigned to ending inventory

• A)FIFO
• B)LIFO
• C)Weighted average

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Definitions:

Ricardian Advantage

A theory in economics that suggests countries should specialize in producing and exporting goods in which they have a relative productivity advantage.

Opportunity Cost

The sacrifice of gains that could have been obtained from alternative choices when one is selected.

Tractors

Farm vehicles designed for high torque at low speeds, used primarily for hauling machinery and trailers in agricultural settings.

Bicycles

Human-powered, pedal-driven vehicles with two wheels attached to a frame, used for transportation, recreation, or sport.