Which of the Following Does NOT Correctly Describe the FIFO

question 43

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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