An Assumption About Cost Flow Is Necessary

question 139

Multiple Choice

An assumption about cost flow is necessary

• A) because it is required by the income tax regulation.
• B) even when there is no change in the purchase price on inventory.
• C) only when the flow of goods cannot be determined.
• D) because prices usually change, and tracking which units have been sold is difficult.

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Definitions:

Commodification

The process by which something, often non-material, becomes transformed into a good or service for economic exchange.

Rationalization

The process of replacing traditional and emotional thought with reason and efficiency, often applied in organizational and economic contexts.

Memorize Scripts

The process of committing a text to memory for the purpose of recitation or performance without reference to the original.

Transnational Corporations

Large companies that operate and have assets in more than one country, influencing global trade and economic dynamics.