Which of the Following Does NOT Correctly Describe the FIFO

question 31

Multiple Choice

Which of the following does NOT correctly describe the FIFO cost formula?

• A) This method assumes that the oldest inventory costs are the first costs recorded for cost of goods sold.
• B) This method assumes that most current inventory costs are the first costs recorded for cost of goods sold.
• C) This method approximates the physical flow of most types of goods.
• D) This method is permitted under both ASPE and IFRS.

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Definitions:

Older

Pertaining to a later stage or time, often used in the context of age or experience.

Male

Referring to the sex that produces small, mobile gametes (sperm) in many species, typically associated with XY chromosomes in humans.

Hereditary

Relating to the transmission of traits from parents to offspring through genes.

Slow-Wave Sleep

A stage of sleep characterized by slow brain waves called delta waves, associated with deep sleep and physical rejuvenation.