Which One of the Following Statements Is True

question 135

Multiple Choice

Which one of the following statements is true?

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

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Definitions:

Performance Appraisals

The systematic evaluation of employee performance against predetermined standards or objectives.

Evaluation Procedures

Formal methods and processes used to assess the effectiveness or performance of employees, projects, or programs.

Justice View

A perspective focusing on fairness in the distribution of rewards and burdens among members of a society or organization.

Utilitarian View

An ethical perspective that suggests actions are right if they are beneficial or bring the greatest good to the greatest number of people.