Which Statement Is Correct About Using a Cost Flow Assumption

question 29

Multiple Choice

Which statement is correct about using a cost flow assumption?

• A)An organization must use the same cost flow assumption as other organizations in its industry.
• B)There is only one acceptable cost flow assumption under GAAP in Canada.
• C)In Canada, organizations can use the FIFO or weighted average cost flow assumptions.
• D)In Canada, organizations can use the FIFO, LIFO or weighted average cost flow assumptions.

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Definitions:

Emergent Norm

Emergent norms refer to behaviors that develop in response to a new or unusual situation, where traditional norms do not apply, and guide participants' actions within the context of that situation.

Technological Determinism

A theory of social change that assumes changes in technology drive changes in society, rather than vice versa.

Low-Carb Diet

A dietary plan that reduces carbohydrate intake in favor of proteins and fats, aimed at weight loss or health maintenance.

Paleo

Often associated with the Paleolithic diet, which is based on the presumed dietary patterns of ancient humans, emphasizing whole foods and limiting processed foods.