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:

Insecure

A feeling of uncertainty or lack of confidence in oneself.

Lumbar

Pertaining to the lower region of the back comprised of the five vertebral bones between the ribcage and pelvis.

Thoracic

Pertaining to the chest area, specifically referencing the part of the spine that connects to the ribs.

Cervical

Relating to the cervix, the lower, narrow part of the uterus that connects to the vagina, or relating to the cervical vertebrae in the neck.