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:

Experiment

A method of research in the sciences or social sciences in which variables are manipulated to observe the effect on some behavior or mental process.

Stress

The body’s response to any demand or challenge, which can be physical, mental, or emotional, and influences the state of both mental and physical health.

Eating Habits

Patterns or behaviors surrounding how and what individuals consume, often influenced by cultural, familial, and personal factors.

Independent Variable

The variable in an experimental setting that is manipulated or changed to observe its effect on a dependent variable.