Which Statement Is Correct About Cost Allocation Methods Under GAAP

question 151

Multiple Choice

Which statement is correct about cost allocation methods under GAAP?

• A)FIFO method expenses the oldest costs first.
• B)FIFO method has the oldest costs on the balance sheet.
• C)FIFO method has the most recent costs in the income statement.
• D)FIFO is not an acceptable cost allocation method.

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Definitions:

Wealth

The abundance of valuable resources or material possessions.

Labor

The work performed by individuals that contributes to the production of goods and services in an economy, often in exchange for wages.

Free Enterprise

An economic system where private business operates with minimal government regulation, emphasizing competition and consumer choice.