Which of the Following Statements Regarding Inventories Is Correct

question 52

Multiple Choice

Which of the following statements regarding inventories is correct?

• A) FIFO assumes that the costs of the earliest goods acquired are the last to be sold.
• B) It is generally good business management to sell the most recently acquired goods first.
• C) Under FIFO, the ending inventory is based on the latest units purchased.
• D) FIFO seldom coincides with the actual physical flow of inventory.

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Definitions:

Intermodal Transportation

The use of multiple modes of transportation, such as trucks, ships, and trains, for moving goods from origin to destination efficiently.

Common Carrier Transportation

The provision of transportation services by a carrier offering its services to the general public under license or authority provided by a regulatory body.

Contract Carrier Transportation

Transportation services provided by a carrier under specific contracts with individual customers, rather than serving the general public.

Supply Chain Strategy

The approach taken by a company to manage the flow of goods, information, and finances from the acquisition of raw materials to the delivery of the product to the end consumer.