Which of the Following Statements Is Correct with Respect to Inventories

question 62

Multiple Choice

Which of the following statements is correct with respect to inventories?

• A)The FIFO method 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:

Tallgrass Prairie

A type of grassland ecosystem characterized by tall grasses, which is native to the central part of the United States.

Europe

A continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere, known for its rich history and cultural diversity.

Northeastern

Pertaining to or located in the northeastern part of a country or region.

Mid-Atlantic

Pertaining to the area of the Atlantic Ocean approximately between North America and Europe.