Which Statement Best Explains the LIFO Cost Flow Assumption

question 127

Multiple Choice

Which statement best explains the LIFO cost flow assumption?

• A)A method that uses the most recent costs in the calculation of cost of sales.
• B)A method that uses the cost of goods available for sale divided by the number of units available for sale.
• C)A method that assigns costs to inventories and cost of sales based on actual costs of each item.
• D)A method that uses the oldest costs in the calculation of cost of sales.

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Definitions:

Rotary

Refers to something revolving around a center or axis, such as a rotary engine or a rotary dial.

Ear Ossicles

The three small bones in the middle ear known as the malleus, incus, and stapes, which transmit sound vibrations from the eardrum to the inner ear.

Visual Accessory

Visual accessory refers to items or devices that enhance or support vision, such as glasses, contact lenses, or magnifying tools.

Eyeball

The spherical part of the eye that contains the optic components necessary for vision.