The LIFO Inventory Method Assumes That the Cost of the Latest

question 189

Multiple Choice

The LIFO inventory method assumes that the cost of the latest units purchased is

• A)the last to be allocated to cost of goods sold.
• B)the first to be allocated to ending inventory.
• C)the first to be allocated to cost of goods sold.
• D)not allocated to cost of goods sold or ending inventory.

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Definitions:

Goodwill

An intangible asset that represents the value of a company's brand name, solid customer base, good customer relations, good employee relations, and any patents or proprietary technology.

Intangible Assets

Assets that cannot be physically touched or held, such as patents, trademarks, and goodwill.

Tangible Assets

Physical and material assets, such as machinery, buildings, and land, that have a value and can be seen and touched.

Comparable Business

A company or business model similar in size, scope, or industry to another, used for benchmarking or competitive analysis.