Which of the Following Is (Are) True Regarding Cost Flow

question 32

Multiple Choice

Which of the following is (are) true regarding cost flow assumptions?

• A) Manufacturing firms are required to use FIFO.
• B) Service firms are required to use LIFO.
• C) If a firm uses FIFO for tax purposes, then FIFO must be used for financial reporting purposes.
• D) If a firm uses LIFO for tax purposes, then LIFO must be used for financial reporting purposes.
• E) All of these.

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Definitions:

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Piaget

A Swiss psychologist known for his work on child development, particularly his theory of cognitive development that describes how children develop intellectually throughout the course of childhood.

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A growth process of deepening understanding of oneself, others, and the universe in a way that connects to a higher purpose or meaning.