Which One of the Following Statements Is True

question 225

Multiple Choice

Which one of the following statements is true?

• A) The flow of inventory costs should match the physical flow of the merchandise.
• B) Accounting standards require that merchandise costs be specifically traced to units left in inventory and to units that have been sold
• C) Accountants have developed methods which make assumptions concerning how costs should be assigned to inventory and cost of goods sold.
• D) Alternative inventory cost flow assumptions have the same effect on the amount of net income reported.

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Definitions:

False Analogy

An argumentative flaw where two things being compared are not sufficiently similar in relevant aspects, leading to a misleading or invalid conclusion.

Overconfidence Bias

A cognitive bias where an individual's subjective confidence in their judgments is greater than their objective accuracy.

Ethical Decision

A choice made based on moral principles and values, often considered in professional and personal scenarios to achieve integrity.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including information about potential customers and competitors.