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

question 94

Short Answer

Match each description to the appropriate cost flow assumption (a-c).
-Produces the same cost of goods sold under both the periodic and the perpetual inventory systems
A)FIFO
B)LIFO
C)Weighted average

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

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Definitions:

Proximate Cause

The primary cause of an injury in law, without which the injury would not have occurred, determining legal liability.

Cause In Fact

In tort law, the relationship between the unreasonable conduct and the injury to the innocent party, whether the injury was or was not foreseeable. Cause in fact is also referred to as actual cause.

Assumption Of Risk

A legal principle where a person knowingly exposes themselves to certain risks and is thus precluded from suing for injuries resulting from those risks.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances.