Which Inventory Cost Flow Assumption Is Most Often Used by Businesses

question 85

Multiple Choice

Which inventory cost flow assumption is most often used by businesses that sell a limited number of high-priced items?

• A) Average cost
• B) FIFO
• C) Specific identification
• D) LIFO

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Definitions:

Parenchyma Cells

Fundamental tissue cells in plants that are involved in photosynthesis, storage, and tissue repair and replacement.

Herbaceous Eudicot

A non-woody flowering plant that belongs to a large group of dicots, characterized by a broad range of leaf shapes and flower structures.

Cortex

The outer layer of various organs and systems in the body, such as the brain (cerebral cortex), responsible for higher order functions, including thought, memory, and sensory processing.

Endodermis

A layer of cells in the roots of land plants that acts as a selective barrier, regulating the passage of substances from the soil into the vascular system.